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	<title>Comments on: When a Nudge Becomes a Shove</title>
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	<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/</link>
	<description>What happened to the global economy and what we can do about it</description>
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		<title>By: Tim</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-30239</link>
		<dc:creator><![CDATA[Tim]]></dc:creator>
		<pubDate>Mon, 12 Oct 2009 23:44:58 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-30239</guid>
		<description><![CDATA[You state, &quot;..., and now you’ve tricked them into something that is bad for them.&quot; I&#039;m sorry but where is the so called &quot;trick&quot;? My sense is that if you are going to use that term then you need to run a study to see if people in fact perceive this to be the case. Otherwise, this might just be your own personal &quot;smart set&quot; reaction.]]></description>
		<content:encoded><![CDATA[<p>You state, &#8220;&#8230;, and now you’ve tricked them into something that is bad for them.&#8221; I&#8217;m sorry but where is the so called &#8220;trick&#8221;? My sense is that if you are going to use that term then you need to run a study to see if people in fact perceive this to be the case. Otherwise, this might just be your own personal &#8220;smart set&#8221; reaction.</p>
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		<title>By: harman</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29617</link>
		<dc:creator><![CDATA[harman]]></dc:creator>
		<pubDate>Mon, 05 Oct 2009 19:08:24 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29617</guid>
		<description><![CDATA[absolutely disagree with the line of reasoning in this post. Please remember that noone is taking away choice. a person can opt out with little or no cost (the basic premise of a nudge).
chris and others here have emphasised the same point. You cant get away without a default (ignoring mandated choice) - so choose a socially optimal one]]></description>
		<content:encoded><![CDATA[<p>absolutely disagree with the line of reasoning in this post. Please remember that noone is taking away choice. a person can opt out with little or no cost (the basic premise of a nudge).<br />
chris and others here have emphasised the same point. You cant get away without a default (ignoring mandated choice) &#8211; so choose a socially optimal one</p>
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		<title>By: TT</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29384</link>
		<dc:creator><![CDATA[TT]]></dc:creator>
		<pubDate>Thu, 01 Oct 2009 20:58:02 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29384</guid>
		<description><![CDATA[You have overlooked a cost. A law saying basically &quot;your body doesn&#039;t belong to you&quot; is likely to decrease respect for the Law in general.]]></description>
		<content:encoded><![CDATA[<p>You have overlooked a cost. A law saying basically &#8220;your body doesn&#8217;t belong to you&#8221; is likely to decrease respect for the Law in general.</p>
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		<title>By: David Goldstein</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29313</link>
		<dc:creator><![CDATA[David Goldstein]]></dc:creator>
		<pubDate>Wed, 30 Sep 2009 20:20:39 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29313</guid>
		<description><![CDATA[&gt;I am under the impression that the Chicago School of Economics has proven that the brain is a rational organ

That is one of the funniest statements I have read in years.

I think rather than proving economic man was perfectly rational, they start with it as an assumption, based on the ramblings of Ayn Rand, and from there, built a perfectly logical and fundamentally flawed model.

They would not be the first.]]></description>
		<content:encoded><![CDATA[<p>&gt;I am under the impression that the Chicago School of Economics has proven that the brain is a rational organ</p>
<p>That is one of the funniest statements I have read in years.</p>
<p>I think rather than proving economic man was perfectly rational, they start with it as an assumption, based on the ramblings of Ayn Rand, and from there, built a perfectly logical and fundamentally flawed model.</p>
<p>They would not be the first.</p>
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		<title>By: chris</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29294</link>
		<dc:creator><![CDATA[chris]]></dc:creator>
		<pubDate>Wed, 30 Sep 2009 14:44:14 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29294</guid>
		<description><![CDATA[&quot;The thing that bothers me is that you are getting outcomes that people would not have chosen.&quot;

I think this is misleading.  The premise of the argument (and the nudge approach to default-setting policy) is that there are some people for whom their choice-when-the-default-is-X is different than their choice-when-the-default-is-Y (because they just accept the default in both cases).  But it seems to me that you are then saying that *because* the current institutionalized default is X, their choice-when-the-default-is-X is somehow their &quot;true&quot; choice that it would be wrong to nudge them away from.  That makes no sense.  If those people&#039;s choices are influenced by context then the choice they make in either context is just as true as the other.

You are getting those outcomes (in the default-Y scenario) precisely because those people, in that scenario, do choose them.  There isn&#039;t some Platonic essence of choice in a vacuum (and if there were, there would be no reason to believe that choice-when-the-default-is-X is it, just because you happen to be writing from a society in which the default is in fact X).  Choice is a context-dependent act.

Or to put it another way, if they *want* to go with the flow more than they want any specific outcome - which is what their behavior in both scenarios, taken together, indicates - then you aren&#039;t coercing them by changing the flow.

Maybe it&#039;s easier to understand if you imagine two countries in the same world with opposite default policies, and two flow-goers who immigrate in opposite directions.  In a sense, both of them are now choosing things that they would not have chosen if they had remained in their original homelands, but I don&#039;t think it follows that either is being coerced.]]></description>
		<content:encoded><![CDATA[<p>&#8220;The thing that bothers me is that you are getting outcomes that people would not have chosen.&#8221;</p>
<p>I think this is misleading.  The premise of the argument (and the nudge approach to default-setting policy) is that there are some people for whom their choice-when-the-default-is-X is different than their choice-when-the-default-is-Y (because they just accept the default in both cases).  But it seems to me that you are then saying that *because* the current institutionalized default is X, their choice-when-the-default-is-X is somehow their &#8220;true&#8221; choice that it would be wrong to nudge them away from.  That makes no sense.  If those people&#8217;s choices are influenced by context then the choice they make in either context is just as true as the other.</p>
<p>You are getting those outcomes (in the default-Y scenario) precisely because those people, in that scenario, do choose them.  There isn&#8217;t some Platonic essence of choice in a vacuum (and if there were, there would be no reason to believe that choice-when-the-default-is-X is it, just because you happen to be writing from a society in which the default is in fact X).  Choice is a context-dependent act.</p>
<p>Or to put it another way, if they *want* to go with the flow more than they want any specific outcome &#8211; which is what their behavior in both scenarios, taken together, indicates &#8211; then you aren&#8217;t coercing them by changing the flow.</p>
<p>Maybe it&#8217;s easier to understand if you imagine two countries in the same world with opposite default policies, and two flow-goers who immigrate in opposite directions.  In a sense, both of them are now choosing things that they would not have chosen if they had remained in their original homelands, but I don&#8217;t think it follows that either is being coerced.</p>
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		<title>By: Russ</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29278</link>
		<dc:creator><![CDATA[Russ]]></dc:creator>
		<pubDate>Wed, 30 Sep 2009 07:55:22 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29278</guid>
		<description><![CDATA[&lt;i&gt;What if, in the future, your grave becomes the place to be for the smartest people in the world, all debating the human condition in honor of your existence. Cool? Yes. Does this have any effect on your lifetime utility? None whatsoever. You cannot experience (utility) what you do not experience (stimuli).&lt;/i&gt;

Actually, it seems like the world is full of people who have the delusion that something like this will be the case.

So ironically, they do get the utility of vicarious vindication, however wrongheaded they are.]]></description>
		<content:encoded><![CDATA[<p><i>What if, in the future, your grave becomes the place to be for the smartest people in the world, all debating the human condition in honor of your existence. Cool? Yes. Does this have any effect on your lifetime utility? None whatsoever. You cannot experience (utility) what you do not experience (stimuli).</i></p>
<p>Actually, it seems like the world is full of people who have the delusion that something like this will be the case.</p>
<p>So ironically, they do get the utility of vicarious vindication, however wrongheaded they are.</p>
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		<title>By: JustMe</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29267</link>
		<dc:creator><![CDATA[JustMe]]></dc:creator>
		<pubDate>Wed, 30 Sep 2009 01:03:23 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29267</guid>
		<description><![CDATA[Being very tired of being a Computer &quot;PLUGGER&quot; if you recognize the cartoon, how about this;

If one is an Organ Donor one can receive Organs.

Seems fair to me!

Herb]]></description>
		<content:encoded><![CDATA[<p>Being very tired of being a Computer &#8220;PLUGGER&#8221; if you recognize the cartoon, how about this;</p>
<p>If one is an Organ Donor one can receive Organs.</p>
<p>Seems fair to me!</p>
<p>Herb</p>
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		<title>By: egk</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29249</link>
		<dc:creator><![CDATA[egk]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 18:38:13 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29249</guid>
		<description><![CDATA[What do you think about lifesharers?   http://lifesharers.org 
basic idea is that people who are willing to donate organs go to the front of the line, should they need one.]]></description>
		<content:encoded><![CDATA[<p>What do you think about lifesharers?   <a href="http://lifesharers.org" rel="nofollow">http://lifesharers.org</a><br />
basic idea is that people who are willing to donate organs go to the front of the line, should they need one.</p>
]]></content:encoded>
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		<title>By: Riggsveda</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29232</link>
		<dc:creator><![CDATA[Riggsveda]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 10:30:54 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29232</guid>
		<description><![CDATA[The difference is that if someone takes my organs after my death or irreversible death-in-life, it doesn&#039;t matter to me one bit. (Me, not my relatives, mind you.)  But being forced to participate in a 401(k) has turned out to be disastrous for many, many people who now have to live the rest of their lives trying to regain economic ground they would have otherwise not lost.

BTW, I&#039;m listed as an organ donor on my drivers&#039; license--an option that PA gives every driver, every time they re-new their license.  Unfortunately, it&#039;s easily overlooked.]]></description>
		<content:encoded><![CDATA[<p>The difference is that if someone takes my organs after my death or irreversible death-in-life, it doesn&#8217;t matter to me one bit. (Me, not my relatives, mind you.)  But being forced to participate in a 401(k) has turned out to be disastrous for many, many people who now have to live the rest of their lives trying to regain economic ground they would have otherwise not lost.</p>
<p>BTW, I&#8217;m listed as an organ donor on my drivers&#8217; license&#8211;an option that PA gives every driver, every time they re-new their license.  Unfortunately, it&#8217;s easily overlooked.</p>
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		<title>By: Min</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29230</link>
		<dc:creator><![CDATA[Min]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 09:22:02 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29230</guid>
		<description><![CDATA[CBS from the West: &quot;But the same cannot be said of one’s corpse. I cannot think of anything one would do differently during one’s lifetime based on expectations about disposition of one’s remains.&quot;

Well, if one is to be the, ahem, main course in one&#039;s funeral banquet, it might be a good idea to fatten up a bit, to get some nice marbling. :)]]></description>
		<content:encoded><![CDATA[<p>CBS from the West: &#8220;But the same cannot be said of one’s corpse. I cannot think of anything one would do differently during one’s lifetime based on expectations about disposition of one’s remains.&#8221;</p>
<p>Well, if one is to be the, ahem, main course in one&#8217;s funeral banquet, it might be a good idea to fatten up a bit, to get some nice marbling. :)</p>
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		<title>By: Karts</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29228</link>
		<dc:creator><![CDATA[Karts]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 05:25:36 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29228</guid>
		<description><![CDATA[This analysis is too weak, and highlights a weakness of modern orthodox economics. The vast majority of economists are so used to dealing with Utility that they forget that it is but a mathematical analog to the physical processes of satisfaction/happiness/whatever it is that utility is meant to measure.

&quot;With organ donation, though, (a) falls away completely; while many people (including me) don’t care what happens to their organs, some people care a lot; if you make them donors by default, not all of them will make the effort to opt out, and now you’ve tricked them into something that is bad for them.&quot;

Well, quite obviously, when you are dead you garner no utility from any external stimuli. It makes no sense at all to speak something being &quot;bad&quot; for somebody who has left this existence.

Prior to one&#039;s death, of course, it is perfectly reasonable to speak of something as generating positive or negative utility. But here, again, there is a problem. Utility, being a mathematical analog to some physical/mental condition, does not exist independently of personal experience. To experience disutility from being an unwilling organ donor, one has to be aware of that status prior to death. No awareness, no utility consideration. As a thought experiment, posit the existence of a vastly cool alien race, which is tragically exterminated by a gigantic comet before they could make contact and enrich your life with all sorts of nice technology and alien jokes. Is your utility affected by this happenstance? No. What if, in the future, your grave becomes the place to be for the smartest people in the world, all debating the human condition in honor of your existence. Cool? Yes. Does this have any effect on your lifetime utility? None whatsoever. You cannot experience (utility) what you do not experience (stimuli). If you have no knowledge of your donor status, then you cannot be affected by it either way.

Now, if you do happen to find out you were registered against your will, then it becomes an economic choice that can register some utility effects. In the case of mandatory enrollment, that is essentially the cost of opting out. This could be made very small. This must be balanced against the welfare gain had by those who wished to enroll, and now find out that they have been saved the trouble.

Finally, one must consider the immense utility generated by receiving a heart, and thus a 20 year extension on life. That is actual utility experienced by a living person, not disutility  &#039;experienced&#039; by a person who, then, is not.

Now, you can argue about the moral correctness of forcing people into outcomes &quot;that people would not have chosen,&quot; but that sort of thing is the basis for policy-making specifically and society more generally. And you can argue about respecting personal intent, but that is a socio-normative consideration, not an economic one.

Just food for thought.]]></description>
		<content:encoded><![CDATA[<p>This analysis is too weak, and highlights a weakness of modern orthodox economics. The vast majority of economists are so used to dealing with Utility that they forget that it is but a mathematical analog to the physical processes of satisfaction/happiness/whatever it is that utility is meant to measure.</p>
<p>&#8220;With organ donation, though, (a) falls away completely; while many people (including me) don’t care what happens to their organs, some people care a lot; if you make them donors by default, not all of them will make the effort to opt out, and now you’ve tricked them into something that is bad for them.&#8221;</p>
<p>Well, quite obviously, when you are dead you garner no utility from any external stimuli. It makes no sense at all to speak something being &#8220;bad&#8221; for somebody who has left this existence.</p>
<p>Prior to one&#8217;s death, of course, it is perfectly reasonable to speak of something as generating positive or negative utility. But here, again, there is a problem. Utility, being a mathematical analog to some physical/mental condition, does not exist independently of personal experience. To experience disutility from being an unwilling organ donor, one has to be aware of that status prior to death. No awareness, no utility consideration. As a thought experiment, posit the existence of a vastly cool alien race, which is tragically exterminated by a gigantic comet before they could make contact and enrich your life with all sorts of nice technology and alien jokes. Is your utility affected by this happenstance? No. What if, in the future, your grave becomes the place to be for the smartest people in the world, all debating the human condition in honor of your existence. Cool? Yes. Does this have any effect on your lifetime utility? None whatsoever. You cannot experience (utility) what you do not experience (stimuli). If you have no knowledge of your donor status, then you cannot be affected by it either way.</p>
<p>Now, if you do happen to find out you were registered against your will, then it becomes an economic choice that can register some utility effects. In the case of mandatory enrollment, that is essentially the cost of opting out. This could be made very small. This must be balanced against the welfare gain had by those who wished to enroll, and now find out that they have been saved the trouble.</p>
<p>Finally, one must consider the immense utility generated by receiving a heart, and thus a 20 year extension on life. That is actual utility experienced by a living person, not disutility  &#8216;experienced&#8217; by a person who, then, is not.</p>
<p>Now, you can argue about the moral correctness of forcing people into outcomes &#8220;that people would not have chosen,&#8221; but that sort of thing is the basis for policy-making specifically and society more generally. And you can argue about respecting personal intent, but that is a socio-normative consideration, not an economic one.</p>
<p>Just food for thought.</p>
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		<title>By: Bayard</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29224</link>
		<dc:creator><![CDATA[Bayard]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 04:06:57 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29224</guid>
		<description><![CDATA[I believe that in any case where the clear benefit goes to the opt in, then the mandate should be applied.  In the cases of organ donation and 401(k)&#039;s, this is true (that the opt in is clealy the best choice, unless circumstances are such -- in a very few cases -- that it&#039;s not).  Why should this be further discussed unless we&#039;re interested in having a deep existential discussion of decision making processes.  Sorry, but I really fail to see the compelling issue.]]></description>
		<content:encoded><![CDATA[<p>I believe that in any case where the clear benefit goes to the opt in, then the mandate should be applied.  In the cases of organ donation and 401(k)&#8217;s, this is true (that the opt in is clealy the best choice, unless circumstances are such &#8212; in a very few cases &#8212; that it&#8217;s not).  Why should this be further discussed unless we&#8217;re interested in having a deep existential discussion of decision making processes.  Sorry, but I really fail to see the compelling issue.</p>
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		<title>By: elainelinc</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29215</link>
		<dc:creator><![CDATA[elainelinc]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 00:57:50 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29215</guid>
		<description><![CDATA[&quot;The thing that bothers me is that you are getting outcomes that people would not have chosen&quot;. I think the behavioral economists are just arguing that it is a perception problem. Changing the framing changes the perception, changes the decision. It doesn&#039;t mean they are being tricked. If information isn&#039;t left out, and they aren&#039;t selecting an option that is against their best interests, then it&#039;s not misleading. We have biases built into our decision making, which sometimes produce bad results - like selecting low introductory rate, high APR credit cards. A bit of paternalism isn&#039;t the worst thing. It&#039;s better to acknowledge that we aren&#039;t all perfectly rational, and there are situations in which we could use some help to make better decisions - like 401ks and maybe organ donation. Those two might have some bias against commitment. The person thinks they can always deal with it later and is avoiding making a decision rather than deliberately choosing not to opt-in.]]></description>
		<content:encoded><![CDATA[<p>&#8220;The thing that bothers me is that you are getting outcomes that people would not have chosen&#8221;. I think the behavioral economists are just arguing that it is a perception problem. Changing the framing changes the perception, changes the decision. It doesn&#8217;t mean they are being tricked. If information isn&#8217;t left out, and they aren&#8217;t selecting an option that is against their best interests, then it&#8217;s not misleading. We have biases built into our decision making, which sometimes produce bad results &#8211; like selecting low introductory rate, high APR credit cards. A bit of paternalism isn&#8217;t the worst thing. It&#8217;s better to acknowledge that we aren&#8217;t all perfectly rational, and there are situations in which we could use some help to make better decisions &#8211; like 401ks and maybe organ donation. Those two might have some bias against commitment. The person thinks they can always deal with it later and is avoiding making a decision rather than deliberately choosing not to opt-in.</p>
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		<title>By: CBS from the West</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29214</link>
		<dc:creator><![CDATA[CBS from the West]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 00:55:08 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29214</guid>
		<description><![CDATA[No, it wouldn&#039;t.  The acquisition of property, and all of the actions undertaken towards that end, are influenced by my expectations and desires about what will happen to that property after my death.  If I cannot leave it to my family, I am less likely to pursue it as aggressively and might devote more of my life to leisure, etc.  The point is that during my lifetime I have a definite stake in what will be done with my possessions after I die, and I make decisions based on those expectations.  

But the same cannot be said of one&#039;s corpse.  I cannot think of anything one would do differently during one&#039;s lifetime based on expectations about disposition of one&#039;s remains.]]></description>
		<content:encoded><![CDATA[<p>No, it wouldn&#8217;t.  The acquisition of property, and all of the actions undertaken towards that end, are influenced by my expectations and desires about what will happen to that property after my death.  If I cannot leave it to my family, I am less likely to pursue it as aggressively and might devote more of my life to leisure, etc.  The point is that during my lifetime I have a definite stake in what will be done with my possessions after I die, and I make decisions based on those expectations.  </p>
<p>But the same cannot be said of one&#8217;s corpse.  I cannot think of anything one would do differently during one&#8217;s lifetime based on expectations about disposition of one&#8217;s remains.</p>
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		<title>By: TPinter</title>
		<link>http://baselinescenario.com/2009/09/28/when-a-nudge-becomes-a-shove/#comment-29213</link>
		<dc:creator><![CDATA[TPinter]]></dc:creator>
		<pubDate>Tue, 29 Sep 2009 00:51:11 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=5095#comment-29213</guid>
		<description><![CDATA[I am confused! I am under the impression that the Chicago School of Economics has proven that the brain is a rational organ and that economic man makes all decisions with complete rationality based upon having all necessary information. If this negates the work of the entire field of evolutionary psychology, so be it!]]></description>
		<content:encoded><![CDATA[<p>I am confused! I am under the impression that the Chicago School of Economics has proven that the brain is a rational organ and that economic man makes all decisions with complete rationality based upon having all necessary information. If this negates the work of the entire field of evolutionary psychology, so be it!</p>
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