Nevertheless, standard economic game theory frequently involves an assumption that it is common knowledge that all players are rational utility maximizers. And the reason it does so is the belief that on the really important decisions, people work extra hard to be rational.
The reason it does so is because it is convenient.
I don’t entirely agree with pgeby. Being unable to adequately approximate human preferences to a single utility function is not something that is a property of the ‘real world’. It is something that is a property of our rather significant limitations when it comes to making such evaluations. Nevertheless, having a textbook prescribe official status to certain mechanisms for deriving a utility function does not make that process at all reliable.
… having a textbook prescribe official status to certain mechanisms for deriving a utility function does not make that process at all reliable.
I’ll be sure to remember that line, for when the people promoting other models of rationality start citing textbooks too. Well, no, I probably won’t, since I doubt I will live long enough to see that. ;)
But, if I recall correctly, I have mostly cited the standard textbook thought-experiments when responding to claims that utility maximization is conceptually incoherent—so absurd that no one in their right mind would propose it.
I’ll be sure to remember that line, for when the people promoting other models of rationality start citing textbooks too. Well, no, I probably won’t, since I doubt I will live long enough to see that. ;)
I see that you are trying to be snide, but it took a while to figure out why you would believe this to be incisive. I had to reconstruct a model of what you think other people here believe from your previous rants.
But, if I recall correctly, I have mostly cited the standard textbook thought-experiments when responding to claims that utility maximization is conceptually incoherent—so absurd that no one in their right mind would propose it.
Yes. That would be a crazy thing to believe. (Mind you, I don’t think pjeby believes crazy things—he just isn’t listening closely enough to what you are saying to notice anything other than a nail upon which to use one of his favourite hammers.)
The reason it does so is because it is convenient.
I don’t entirely agree with pgeby. Being unable to adequately approximate human preferences to a single utility function is not something that is a property of the ‘real world’. It is something that is a property of our rather significant limitations when it comes to making such evaluations. Nevertheless, having a textbook prescribe official status to certain mechanisms for deriving a utility function does not make that process at all reliable.
I’ll be sure to remember that line, for when the people promoting other models of rationality start citing textbooks too. Well, no, I probably won’t, since I doubt I will live long enough to see that. ;)
But, if I recall correctly, I have mostly cited the standard textbook thought-experiments when responding to claims that utility maximization is conceptually incoherent—so absurd that no one in their right mind would propose it.
I see that you are trying to be snide, but it took a while to figure out why you would believe this to be incisive. I had to reconstruct a model of what you think other people here believe from your previous rants.
Yes. That would be a crazy thing to believe. (Mind you, I don’t think pjeby believes crazy things—he just isn’t listening closely enough to what you are saying to notice anything other than a nail upon which to use one of his favourite hammers.)