Logic vs. Emotion in Decision-Making
deliasee writes "Researchers at Princeton have announced the results of a brain imaging study showing that a battle between different logical and emotional sectors of the brain results in a decision. The study used a game theory scenario to investigate why people often make irrational decisions that actually go against their most logical best interests - as in, I would like to get _some_ money as opposed to _no_ money."
Basically, one person has $10 and the other has $0. The person with $10 has to offer money to the other person.
Now, if the person with $10 offers $1 to the other, both people "win" - person A is up $9, person B is up $1. So, it would be logical for person B to accept the offer.
In most cases, though, person B will reject the offer - as it seems unfair for him to be only getting a small amount. S/He rejects the offer, even though it means BOTH people get nothing.
So, it's a nice illustration of rational vs. irrational thought.
You don't really need to understand game theory to get this application of it.
Basically, two random individuals are put in a situation with a few ground rules (one being that this is the only time these two people will play this game together)
Person A is then allowed to offer person B a portion of $10; if person B accepts, person A gets to keep the remainder of the $10; if person B rejects the offered money, neither of them get any of the money.
The article is saying that people tend to reject low offers (like $1) since obviously, they want at least $5 of the money, and see less than that as unfair.
Hume
figured that out more then 200 years ago.
Why is science always the last to figure things out?