tag:blogger.com,1999:blog-18156735.post113742748603245744..comments2023-10-29T17:43:27.054+07:00Comments on café salemba: Is more (always) better?Unknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-18156735.post-1137502734592311112006-01-17T19:58:00.000+07:002006-01-17T19:58:00.000+07:00On the act of choice and husband-wife --intellectu...On the act of choice and husband-wife --intellectual-- quarrel, I like this illustration from, again, Sen's 'Rationality and Freedom', 2002, p177, on Ragnar Frisch and his wife, as follows<BR/><BR/>"...Assume that my wife and I have had dinner alone as we usually do. For dessert two cakes have been purchased. They are very different, but both are very fine cakes and expensive --according to our standard. My wife hands me the tray and suggests that I help myself. What shall I do? By looking up my own total utility function I find that I very much would like to devour one particular one of the two cakes. I will propound that this introspective observation is completely irrelevant for the choice problem I face. The really relevant problem is: which one of the two cakes does my wife prefer? If I knew that the case would be easy. I would say "yes, please" and take the other cake, the one that is her second priority..."<BR/><BR/>Certainly Sen, and maybe Frisch too, is more romantic than compound personal utility maximizer like Gary Becker, who would merely incorporate this loving act into one's personal utility function –that is, Frisch's--; as Sen then interprets this act into joint outcome utility analysis, or the so called fiduciary responsibility for what the wife gets. Economists are supposedly romantic, no? :-)<BR/><BR/>As for AP’s fondness to tiara-what's-he-rname, well, I hate to break your fantasy, AP; but my reliable source said that the weblog is not written by herself –-maybe you do that? :-)Rizalhttps://www.blogger.com/profile/00173988218021291027noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-1137471706125606922006-01-17T11:21:00.000+07:002006-01-17T11:21:00.000+07:00Roby, thanks for the reference. Also, the latest i...Roby, thanks for the reference. Also, the latest issue of The Economist has <A HREF="http://www.economist.com/research/articlesBySubject/displayStory.cfm?subjectid=348918&story_id=5382702" REL="nofollow">an article</A> about McFadden's remark in the AEA meeting. McFadden thinks consumers are sometimes "wrong": they don't act rationally when they face <I>too</I> many options in the market. McFadden calls this "<B>agoraphobia</B>". But I agree with The Economist, when reality bites, don't blame it; instead, fix the theory. In this case however, even the theory is still defendable (Frank Taussig's claim stands corrected, I think).Acohttps://www.blogger.com/profile/16457844915547531461noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-1137469665119355472006-01-17T10:47:00.000+07:002006-01-17T10:47:00.000+07:00but Aco, i wouldn't be surprised if AP is so into ...but Aco, i wouldn't be surprised if AP is so into infotainment gossips. let's just say, there's a team of it from BOE Clan, serving class-A (unpublished) shit. <BR/><BR/>plus, clearly AP has a current fixation on Tiara Lestari. it it her mind, her body, her boobies? whoops, mind my French, i just watched King Kong last night...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18156735.post-1137468813295435052006-01-17T10:33:00.000+07:002006-01-17T10:33:00.000+07:00"Social psychologists Sheena Iyengar, PhD, a manag..."Social psychologists Sheena Iyengar, PhD, a management professor at Columbia University Business School, and Mark Lepper, PhD, a psychology professor at Stanford University, were the first to empirically demonstrate the downside of excessive choice. In a 2000 paper in the Journal of Personality and Social Psychology (JPSP, Vol. 79, No. 6), the team showed that when shoppers are given the option of choosing among smaller and larger assortments of jam, they show more interest in the larger assortment. But when it comes time to pick just one, they're 10 times more likely to make a purchase if they choose among six rather than among 24 flavors of jam"<BR/><BR/>more: http://www.apa.org/monitor/jun04/toomany.htmlRobyhttps://www.blogger.com/profile/17313212532955108268noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-1137465644160846662006-01-17T09:40:00.000+07:002006-01-17T09:40:00.000+07:00Hahaha, don't get trapped by Ape's trick :-) Read ...Hahaha, don't get trapped by Ape's trick :-) Read carefully his last paragraph: "<B>[U]nfortunately</B>, I have <I>too many options</I> to do now. And deciding which one I'm going to do may take a few minutes...". The answer lies exactly there.<BR/><BR/>By the way, me not quarrel with my beloved wife :-) Not at all. <A HREF="http://worldtous.blogspot.com/" REL="nofollow">See?</A>Acohttps://www.blogger.com/profile/16457844915547531461noreply@blogger.comtag:blogger.com,1999:blog-18156735.post-1137464315116259092006-01-17T09:18:00.000+07:002006-01-17T09:18:00.000+07:00seems that your choices are more like the sum of g...seems that your choices are more like the sum of guilty pleasures rather than your so-called rational benefits. any theory on trashy-junk preferences, sire?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18156735.post-1137443004870323702006-01-17T03:23:00.000+07:002006-01-17T03:23:00.000+07:00I think we can also combine the insight of two Nob...I think we can also combine the insight of two Nobel Prize winner here. Amartya Sen and Herbert Simon.<BR/><BR/>Sen (as I understant him) put greater emphasis on increase of capability that increase of choice brings (can call it elasticity). If the increase of choice is only expanding matters that do not increase capability then it matter little. <BR/><BR/>In Sen's latest book, 'Rationality and Fredom'(2002) page 13, he give example of choice set A (to be hang, to be shot and to be burnt alive) as counter example against cardinal base approach to choice. It is the quality of choices that matter<BR/><BR/>Herbert Simon focus on bounded rationality. Human has limited ability to process ability to process information. Thus, we have to calculate the mental cost (time and energy to think, compare, read reviews, etc) of increasing choice to the benefit of increasing choice.<BR/><BR/>BerlyBerlyhttps://www.blogger.com/profile/11277891530068241376noreply@blogger.com