Eyal Winter
The Center for the Study for Rationality
The Hebrew University of Jerusalem
Prefrontal Cortex
Behavioral Economics
 Bridging between the classical decision models (mainly in
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econ) and experimental/empirical findings.
Classical models assume primarily the maximization of
material preferences.
Behavioral models look also at mental and emotional
preferences.
Most of the literature in behavioral economics is focusing
on mental fallacies and biases that drive us away from our
material objectives.
I am instead trying to point out at cases in which our biases
and emotions serve our interests sometimes even the
narrow and immediate material interest
Anger
 Sorry your flight has been canceled
 Al-Jazira interview
 Mental Equilibrium
 “Incentivising” Emotions
Mental Equilibrium and The
Prisoners’ Dilemma
4,4
5,0
Material
0,5
1,1
-10,-10
Mental
4,4
-10,-10
1,1
Cockatoos risk their lives to protect
the flock
Turdoides squamiceps (Syrian African rift)
Feed the entire flock not only their offspring
Refrain from Breeding
Altruism and Rationality
 Zahavi’s Handicap Principle
 Kin Selection
 Group Selection
- 1365 × 2048geocaching.com
Kin Selection
 Altruism is more common in social environments
which are ethnically homogenous.
 James Andreoni: A 10 percentage point increase in
ethnic diversity secuder donations14% yb
 Tax Evasion in Norway!
The biological mechanisms for
altruism, cooperation and trust
 Oxytocin
 Autism and William’s Syndrome