Risk neutrality

[Adam Smith]

Originally posted by KrazyHorse
A philosopher and an economist arguing over the futility of each other's disciplines.

I don't really care who wins, as long as they both get hurt.

So what's your objection?

[KrazyHorse]

Nothing. Please continue.

[KrazyHorse]

Although I guess I have to side with the economists here. As fuzzy as their reasoning is on many occasions, they at least have some form of testability.

[KrazyHorse]

Come on, Adam. You know I love you. It's just fun to tweak your tail sometimes...

[Asher]

Originally posted by Agathon
No. I just think it is a pseudo subject as it is conducted at present. A decent economics would look at what people actually do, rather than making ridiculous assumptions about rational action.

Some do the former, but not nearly enough.

Oh SNAP! A philosophy instructor calling another subject a pseudo-subject and slighting its usefulness.

[Odin]

I agree with UR, most of economics is voodoo; Basically classical liberalist philosophy made to sound scientific.

[Saras]

Originally posted by Odin
I agree with UR, most of economics is voodoo; Basically classical liberalist philosophy made to sound scientific.

[Imran Siddiqui]

Originally posted by Odin
I agree with UR, most of economics is voodoo; Basically classical liberalist philosophy made to sound scientific.

So Marx was a classical liberal?

(Pssst... he was an economist too)

[Japher]

This guy is my accountant!

[ajbera]

Just read this, some relation to topic:

Off your rocker and in the money
Researchers find link between brain flaws and market success.

September 19, 2005: 9:00 AM EDT

LONDON (Reuters) - "Wanted: psychopaths to make a killing in the markets".

Such an advertisement will not be appearing in the world's newspapers any time soon, but it may have a ring of truth after research revealed the best wheeler-dealers could well be "functional psychopaths".

A team of U.S. scientists has found the emotionally impaired are more willing to gamble for high stakes and that people with brain damage may make good financial decisions, the Times newspaper reported on Monday.

In a study of investors' behavior 41 people with normal IQs were asked to play a simple investment game. Fifteen of the group had suffered lesions on the areas of the brain that affect emotions.

The result was those with brain damage outperformed those without.

The scientists found emotions led some of the group to avoid risks even when the potential benefits far outweighed the losses, a phenomenon known as myopic loss aversion.

One of the researchers, Antione Bechara, an associate professor of neurology at the University of Iowa, said the best stock market investors might plausibly be called "functional psychopaths."

Fellow author, Baba Shiv of Stanford Graduate School of Business said many company chiefs and top lawyers may also show they share the same trait.

"Emotions serve an adaptive role in speeding up the decision-making process," said Shiv.

"However, there are circumstances in which a naturally occurring emotional response must be inhibited, so that a deliberate and potentially wiser decision can be made."

The study, published in June in the journal Psychological Science, was conducted by a team of researchers from Stanford University, Carnegie Mellon University, and the University of Iowa.

http://money.cnn.com/2005/09/19/news/international/psychopaths.reut/index.htm