The psychology behind irrational decisions – Sara Garofalo

The psychology behind irrational decisions – Sara Garofalo



View full lesson: http://ed.ted.com/lessons/the-psychology-behind-irrational-decisions-sara-garofalo

Often people make decisions that are not “rational” from a purely economical point of view — meaning that they don’t necessarily lead to the best result. Why is that? Are we just bad at dealing with numbers and odds? Or is there a psychological mechanism behind it? Sara Garofalo explains heuristics, problem-solving approaches based on previous experience and intuition rather than analysis.

Lesson by Sara Garofalo, animation by TOGETHER.

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May 12, 2016 / 44 Comments / by / in
  • Lol being an econ student the first example didn't fool me haha

  • i'm so confused why someone would pick B i get they think there's a lot of green rolls but did they not see it's the same thing as A but your "ahead of that" roll can be whatever lol

  • I prepared for days to go to this job interview today. I would have loved this job, this morning I was comfortable and confident, I got ready looked great was sure I'd get this job. I really wanted it and I am very qualified for it but the second I got to the door I walked in and walked out :/ I didn't even know what the hell I was doing in under 10 seconds I just walked out of the place and got ice cream next door, I don't even like ice cream I haven't had ice cream in years !! why did I do that ? it was a split second decision I just did it and I could not control myself, talk abt a bad decision

  • male voice is better

  • UGH TOO MANY NUMBERS AND LETTERS AND COIN FLIPPING MY HEAD HURTS I'M LEAVING TO GO SEE THE PARADOX OF VALUE

  • 1:55 ooooooo shots fired

  • This whole video can be explained simply by people not wanting to take a loss.
    The outcomes are the same but what you started with is different!

    more and more the quality of these Ted-Ed videos are becoming more like TedX. It's been a while since I saw any videos of quality now.

  • I flipped the coin in the 1st round and took the loss in the second…

  • I would have chosen the certain outcome both times, since the average outcome was the same.
    Because fuck it, I'm an engineer.

  • All my life i try to fuse world-lnowlegde and heuristics together.
    Other people sometimes look at me like at a mad scientist, but most often i go out sucessful out of given scenarious, let it be chess chess or driving. I threw morals and emotion-based decisions out the window because they change from day to day, or based on the group you are in. Don't try to find the right answers, try to find the right questions. And just add a splitsecond of tought into anything that leaves virtually no time to think before you act.

  • "The intuitive answer may not be the right one after all."

    ^My brain during an exam.

  • I actually chose B. =)) Really.

  • That is why most people are bad poker player.

  • TURKISH PLEASE :))))

  • I would flip the first, then just take the second

  • I actually made the opposite decisions in the beginning scenario :/

  • B

  • cool

  • I picked option A. I guess all the videos I've watched about logical fallacies, cognitive biases, and probability have done me good. Wait, did I just commit post hoc ergo propter hoc? 😉

  • W͟h͟a͟t͟e͟v͟e͟r͟ s͟i͟d͟e͟ t͟h͟a͟t͟'s͟ o͟n͟ t͟o͟p͟ o͟f͟ t͟h͟e͟ q͟u͟a͟r͟t͟e͟r͟ i͟s͟ 51% w͟i͟l͟l͟ l͟a͟n͟d͟ o͟n͟ t͟h͟e͟ s͟a͟m͟e͟ s͟i͟z͟e͟

  • 2:18 I chose A…just because it was shorter and I didn't want to roll a die that many times…lol.

  • I'd flip the coins both times go big or go home

  • Will help me with Europa Universals 4

  • i have good luck so I coinflip on both

  • that skateboarding fail was unexpectedly amazing

  • this explains a lot about my shortcomings a year back, its so easy to just sit back and only rely on intuition as if youre jesus and have superhuman psychic powers

  • So is the fact that people take negatives stronger than positives simalar to positive and negative first impressions?

  • Loss aversion actually can be rational. People tend to gain less utility with each dollar they gain. So, given the same starting point, each dollar gained has less utility than each dollar lost.

  • Game theory

  • Warning: this video has no academic or scientific value. Risk aversion has to do with "expected utility". Whether you chose to flip a coin or not, in both cases you would be optimizing your expected utility. Hence, the illustrated example in the video does not show any irrational decision. An irrational decision is the one that doesn't optimize the expected utility of the agent. Look for "individual non-optimization" for more details.

  • I chose to flip a coin to decide whether to flip the coin or take the loss.

  • wait am i the only one that choose not to flip LOL

  • For me, I actually chose to flip the coin on the first round and pay on the second.

  • I flipped both times

  • The video was narrated to you by – pen apple apple pen*

  • I made recently what some may think was an irrational decision. He didn't want to live with me. I wasn't going to push the issue because it would of caused a big argument. Then came the decision making moment. Most loving partners would offer kind words as a very minimal when you are remembering your daughter's passing anniversary. He told me it wasn't normal to remember her passing day anniversary. Many of my friends and family think his attitude was both cold and heartless. My dr even said that it is important to remember her no matter how many years go by. That was the reason I decided to say goodbye. He never cared or loved me 😔

  • I did flip coin for both. $1000(+) is always a win in my book

  • I chose to take the guaranteed decision both times.

  • Im smarty than college

  • When you lose your hair and gain a brain

  • Maybe Trump voters could talk about this!

  • "if heuristics lead to all these wrong decisions then why do we have them?"
    me right after: "capitalism"

  • shes wrong i fliped the coin 2 times and i figured since got heads 1st time and took the coin again since i figured i lose nothing or am back to 1000 so i said what ever lets do it agian

  • oh whoops, i chose to take the coin in the first round and take the loss in the second, time to click away because this video doesnt apply to me 

    continues watching

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