Thought as a Rational Thought as a Rational ProcessProcess

By: Matthew Hastedt

OutlineOutline

Study of economicsStudy of economics Economics as study of human Economics as study of human

behaviorbehavior Linear regression as thought processLinear regression as thought process Economic decisions about evolutionEconomic decisions about evolution

Thought and ComputationThought and Computation

The application of economic theory The application of economic theory as a part of thought as a rational as a part of thought as a rational

process.process.

The simple definition of economics The simple definition of economics is the study of how scarce is the study of how scarce

resources are utilized while resources are utilized while demands are unlimited. demands are unlimited.

Economic theory is grounded in Economic theory is grounded in assumptions of rational behavior, and assumptions of rational behavior, and theoretically constructed out of what theoretically constructed out of what

logically follows from assuming rational logically follows from assuming rational behavior (Cosmides and Tooby, 327).behavior (Cosmides and Tooby, 327).

Economic theory gains its specificity Economic theory gains its specificity by the addition of various variables by the addition of various variables

such as peoples preferences such as peoples preferences (Cosmides and Tooby, 327).(Cosmides and Tooby, 327).

Econometrics is a type of economics Econometrics is a type of economics that relies upon math analysis that relies upon math analysis particularly linear regressionparticularly linear regression

The likelihood of a person The likelihood of a person committing a crime can be broken committing a crime can be broken down to an equation. Crime= B0 + down to an equation. Crime= B0 +

B1 Wage + B2 Race + B3 OtherInc + B1 Wage + B2 Race + B3 OtherInc + B4 ProbCaught + B5 FreqArr + B6 B4 ProbCaught + B5 FreqArr + B6

FreqCon + B7 AvgSen + V FreqCon + B7 AvgSen + V

A similar concept to rationalizing out A similar concept to rationalizing out human thought is the rationalization human thought is the rationalization

of evolutionary decisions. of evolutionary decisions.

In the evolutionary sense to In the evolutionary sense to maximize ones utility one must maximize ones utility one must produce offspring to carry their produce offspring to carry their

genetic code. genetic code.

Evolution as a Rational Process

Utility DecisionsUtility Decisions

What is utility how is it measured?What is utility how is it measured? Cardinal VS OrdinalCardinal VS Ordinal

Types of evolutionary decisionsTypes of evolutionary decisionsHow many kids to haveHow many kids to haveLife goals/plansLife goals/plansPersonal preferencesPersonal preferences

ConclusionConclusion

Do people act rationally all the time?Do people act rationally all the time? How much of a problem is itHow much of a problem is it

Once behavior or thought can be Once behavior or thought can be taken down to a rational process and taken down to a rational process and can thus be reasoned out, it is then can thus be reasoned out, it is then possible to construct a program to possible to construct a program to compute compute

Work CitedWork Cited

Cosmides, Lenda and John Tooby. “Better than Cosmides, Lenda and John Tooby. “Better than Rational: Evolutionary Psychology and the Rational: Evolutionary Psychology and the Invisible Hand.” Invisible Hand.” The American Economic Review.The American Economic Review. Vol. 84.2 (1994) (pp 327-332). JSTOR.  Fintel Vol. 84.2 (1994) (pp 327-332). JSTOR.  Fintel Library, Roanoke College, Salem, VA.  19 Mar Library, Roanoke College, Salem, VA.  19 Mar 2006.  <http://www.jstor.org/ 2006.  <http://www.jstor.org/