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Javier E

The Irrational Consumer: Why Economics Is Dead Wrong About How We Make Choices - Derek Thompson - The Atlantic - 4 views

  • Atlantic.displayRandomElement('#header li.business .sponsored-dropdown-item'); Derek Thompson - Derek Thompson is a senior editor at The Atlantic, where he oversees business coverage for the website. More Derek has also written for Slate, BusinessWeek, and the Daily Beast. He has appeared as a guest on radio and television networks, including NPR, the BBC, CNBC, and MSNBC. All Posts RSS feed Share Share on facebook Share on linkedin Share on twitter « Previous Thompson Email Print Close function plusOneCallback () { $(document).trigger('share'); } $(document).ready(function() { var iframeUrl = "\/ad\/thanks-iframe\/TheAtlanticOnline\/channel_business;src=blog;by=derek-thompson;title=the-irrational-consumer-why-economics-is-dead-wrong-about-how-we-make-choices;pos=sharing;sz=640x480,336x280,300x250"; var toolsClicked = false; $('#toolsTop').click(function() { toolsClicked = 'top'; }); $('#toolsBottom').click(function() { toolsClicked = 'bottom'; }); $('#thanksForSharing a.hide').click(function() { $('#thanksForSharing').hide(); }); var onShareClickHandler = function() { var top = parseInt($(this).css('top').replace(/px/, ''), 10); toolsClicked = (top > 600) ? 'bottom' : 'top'; }; var onIframeReady = function(iframe) { var win = iframe.contentWindow; // Don't show the box if there's no ad in it if (win.$('.ad').children().length == 1) { return; } var visibleAds = win.$('.ad').filter(function() { return !($(this).css('display') == 'none'); }); if (visibleAds.length == 0) { // Ad is hidden, so don't show return; } if (win.$('.ad').hasClass('adNotLoaded')) { // Ad failed to load so don't show return; } $('#thanksForSharing').css('display', 'block'); var top; if(toolsClicked == 'bottom' && $('#toolsBottom').length) { top = $('#toolsBottom')[0].offsetTop + $('#toolsBottom').height() - 310; } else { top = $('#toolsTop')[0].offsetTop + $('#toolsTop').height() + 10; } $('#thanksForSharing').css('left', (-$('#toolsTop').offset().left + 60) + 'px'); $('#thanksForSharing').css('top', top + 'px'); }; var onShare = function() { // Close "Share successful!" AddThis plugin popup if (window._atw && window._atw.clb && $('#at15s:visible').length) { _atw.clb(); } if (iframeUrl == null) { return; } $('#thanksForSharingIframe').attr('src', "\/ad\/thanks-iframe\/TheAtlanticOnline\/channel_business;src=blog;by=derek-thompson;title=the-irrational-consumer-why-economics-is-dead-wrong-about-how-we-make-choices;pos=sharing;sz=640x480,336x280,300x250"); $('#thanksForSharingIframe').load(function() { var iframe = this; var win = iframe.contentWindow; if (win.loaded) { onIframeReady(iframe); } else { win.$(iframe.contentDocument).ready(function() { onIframeReady(iframe); }) } }); }; if (window.addthis) { addthis.addEventListener('addthis.ready', function() { $('.articleTools .share').mouseover(function() { $('#at15s').unbind('click', onShareClickHandler); $('#at15s').bind('click', onShareClickHandler); }); }); addthis.addEventListener('addthis.menu.share', function(evt) { onShare(); }); } // This 'share' event is used for testing, so one can call // $(document).trigger('share') to get the thank you for // sharing box to appear. $(document).bind('share', function(event) { onShare(); }); if (!window.FB || (window.FB && !window.FB._apiKey)) { // Hook into the fbAsyncInit function and register our listener there var oldFbAsyncInit = (window.fbAsyncInit) ? window.fbAsyncInit : (function() { }); window.fbAsyncInit = function() { oldFbAsyncInit(); FB.Event.subscribe('edge.create', function(response) { // to hide the facebook comments box $('#facebookLike span.fb_edge_comment_widget').hide(); onShare(); }); }; } else if (window.FB) { FB.Event.subscribe('edge.create', function(response) { // to hide the facebook comments box $('#facebookLike span.fb_edge_comment_widget').hide(); onShare(); }); } }); The Irrational Consumer: Why Economics Is Dead Wrong About How We Make Choices By Derek Thompson he
  • First, making a choice is physically exhausting, literally, so that somebody forced to make a number of decisions in a row is likely to get lazy and dumb.
  • Second, having too many choices can make us less likely to come to a conclusion. In a famous study of the so-called "paradox of choice", psychologists Mark Lepper and Sheena Iyengar found that customers presented with six jam varieties were more likely to buy one than customers offered a choice of 24.
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  • Many of our mistakes stem from a central "availability bias." Our brains are computers, and we like to access recently opened files, even though many decisions require a deep body of information that might require some searching. Cheap example: We remember the first, last, and peak moments of certain experiences.
  • The third check against the theory of the rational consumer is the fact that we're social animals. We let our friends and family and tribes do our thinking for us
  • neurologists are finding that many of the biases behavioral economists perceive in decision-making start in our brains. "Brain studies indicate that organisms seem to be on a hedonic treadmill, quickly habituating to homeostasis," McFadden writes. In other words, perhaps our preference for the status quo isn't just figuratively our heads, but also literally sculpted by the hand of evolution inside of our brains.
  • The popular psychological theory of "hyperbolic discounting" says people don't properly evaluate rewards over time. The theory seeks to explain why many groups -- nappers, procrastinators, Congress -- take rewards now and pain later, over and over again. But neurology suggests that it hardly makes sense to speak of "the brain," in the singular, because it's two very different parts of the brain that process choices for now and later. The choice to delay gratification is mostly processed in the frontal system. But studies show that the choice to do something immediately gratifying is processed in a different system, the limbic system, which is more viscerally connected to our behavior, our "reward pathways," and our feelings of pain and pleasure.
  • the final message is that neither the physiology of pleasure nor the methods we use to make choices are as simple or as single-minded as the classical economists thought. A lot of behavior is consistent with pursuit of self-interest, but in novel or ambiguous decision-making environments there is a good chance that our habits will fail us and inconsistencies in the way we process information will undo us.
  • Our brains seem to operate like committees, assigning some tasks to the limbic system, others to the frontal system. The "switchboard" does not seem to achieve complete, consistent communication between different parts of the brain. Pleasure and pain are experienced in the limbic system, but not on one fixed "utility" or "self-interest" scale. Pleasure and pain have distinct neural pathways, and these pathways adapt quickly to homeostasis, with sensation coming from changes rather than levels
  • Social networks are sources of information, on what products are available, what their features are, and how your friends like them. If the information is accurate, this should help you make better choices. On the other hand, it also makes it easier for you to follow the crowd rather than engaging in the due diligence of collecting and evaluating your own information and playing it against your own preferences
marleen_ueberall

Knowledge formation and its history - Research themes - CLUE+ Research Institute for Culture, History and Heritage, Vrije Universiteit Amsterdam - 0 views

  • Knowledge is a key concept and an instrument of high value in contemporary society.
  • The ambition illustrates the idea that knowledge is conceived as a goal and an ideal for education and development of individuals and groups, including academic education and research, as well as a profitable instrument for researchers, employers, entrepreneurs, and government institutions in our society.
  • And these discussions of knowledge
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  • preconditions for attributing these functions to knowledge include critical reflections of the nature of knowledge, its possibilities and limitations.
  • cover the sources of knowledge, its history, and justification narratives, its strengths, limitations, and the distinctive levels of knowledge,
  • The formation of knowledge is taken to refer to the construction of normative orders
  • These normative orders are formed by distinctions such as true-untrue, good-bad, justified-unjustified, beautiful-ugly, as in science, art, law, history, philosophy, economy, sociology, anthropology, and religion.
  • The discussions of these normative orders cover the analyses of their formation, embodiment, application and education, their histories and their constituents.
johnsonel7

The case for economics - by the numbers | MIT News - 0 views

  • In recent years, criticism has been levelled at economics for being insular and unconcerned about real-world problems. But a new study led by MIT scholars finds the field increasingly overlaps with the work of other disciplines, and, in a related development, has become more empirical and data-driven, while producing less work of pure theory.
  • In psychology journals, for instance, citations of economics papers have more than doubled since 2000. Public health papers now cite economics work twice as often as they did 10 years ago, and citations of economics research in fields from operations research to computer science have risen sharply as well.
  • As Angrist acknowledges, one impetus for the study was the wave of criticism the economics profession has faced over the last decade, after the banking crisis and the “Great Recession” of 2008-2009, which included the finance-sector crash of 2008. The paper’s title alludes to the film “Inside Job” — whose thesis holds that, as Angrist puts it, “economics scholarship as an academic enterprise was captured somehow by finance, and that academic economists should therefore be blamed for the Great Recession.”
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  • “If you ask me, economics has never been better,” says Josh Angrist, an MIT economist who led the study. “It’s never been more useful. It’s never been more scientific and more evidence-based.”
  • The study also details the relationship between economics and four additional social science disciplines: anthropology, political science, psychology, and sociology. Among these, political science has overtaken sociology as the discipline most engaged with economics. Psychology papers now cite economics research about as often as they cite works of sociology. The new intellectual connectivity between economics and psychology appears to be a product of the growth of behavioral economics, which examines the irrational, short-sighted financial decision-making of individuals — a different paradigm than the assumptions about rational decision-making found in neoclassical economics.
  • “It really seems to be the diversity of economics that makes it do well in influencing other fields,” Ellison says. “Operations research, computer science, and psychology are paying a lot of attention to economic theory. Sociologists are paying a lot of attention to labor economics, marketing and management are paying attention to industrial organization, statisticians are paying attention to econometrics, and the public health people are paying attention to health economics. Just about everything in economics is influential somewhere.”
krystalxu

Social Philosophy - Sociology, Philosophy and Anthropology - University of Exeter - 0 views

  • We draw on all these areas to address a variety of contemporary and urgent themes that are philosophically challenging, and at the same time also have immediate relevance for our lives as social beings, in our daily interactions as well as in relation to broader economic, scientific, technological and cultural events.
  • Traditional understandings of the human-nonhuman relationship are being questioned,
peterconnelly

An Extinct, Head-Butting Animal May Help Explain Giraffes' Long Necks | Smart News| Smithsonian Magazine - 0 views

  • Charles Darwin held up giraffes as a prime example of natural selection, his theory that’s often summarized as “survival of the fittest.” Giraffes with comparably longer necks could reach food high up in trees, which gave them an advantage over other animals and members of their own species with shorter necks. These longer-necked individuals thrived and reproduced more, leading to generations of giraffes with their signature lengthened anatomy.
  • Yes, giraffes may have evolved to be able to reach food at higher elevations, but their long necks may also be the result of fierce competition for mates
  • For many years, researchers simply called the mysterious animal “guài shòu,” or “strange beast.” Now, scientists have given the mammal a name—Discokeryx xiezhi—and they’ve pieced together a rough outline of how the animal may have lived some 16.9 million years ago.
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  • Discokeryx xiezhi was an early relative of today’s giraffes, but more like a cousin and not a direct ancestor.
  • “To the best of our knowledge, D. xiezhi exhibits the most optimized head-butting adaptation in vertebrate evolution,” the researchers write in the paper.
  • The discovery of Discokeryx xiezhi suggests this fighting style and competition for mates may be a contributing factor in their long-neck evolution.
  • “In reality, it was likely a combination of natural selection ... for a particular dietary preference and sexual selection in that lineage that drove the evolution of modern giraffe necks and limbs,” Advait Jukar, a paleobiologist at Yale University who was not involved in the study tells Scientific American’s Rachel Nuwer.
marvelgr

THE BASES OF THE MIND:THE RELATIONSHIP OF LANGUAGE AND THOUGHT | by Koç University | Koç University | Medium - 0 views

  • We can talk about three different interactions when we investigate the complex relationships between language and thinking. First, the existence of language as a cognitive process affects the system of thinking. Second, thinking comes before language, and the learning of a language interacts with the conceptual process that is formed before language use. Third, each language spoken may affect the system of thinking. Here we will discuss these three interactions under these subsections: “thinking without language,” “thinking before language,” and “thinking with language.”
  • Babies can categorize objects and actions, understand the cause and effect relationship between events, and see the goals in a movement. Recent studies on action representation and spatial concepts have shown that babies’ universal and language-general action representation productively changes with the learning of the mother tongue. For example, languages use prepositions to express the relationship between objects, i.e., in, on, under. However, languages also vary how they use these relations. One of the most significant studies suggests that babies can differentiate between concepts expressed with prepositions such as containment (in) and support (on). The Korean language specifies the nature of these containment and support relationships using the tightness of the relationship between objects: tight or loose. For example, a pencil in a pencil-size box represents a tight relationship, while a pencil in a big basket represents a loose relationship.
  • In the late 1800s, anthropologist Franz Boas laid the foundations of cultural relativity. According to this point of view, individuals see and perceive the world within the boundaries of their cultures. The role of anthropology is to investigate how people are conditioned by their culture and how they interact with the world in different ways. To understand such mechanisms, it suggests, implications in culture and language should be studied. The reflection of this view in the relationship between language and thought is the linguistic determinism hypothesis advanced by Eric Safir and Benjamin Lee Whorf. This hypothesis suggests that thought emerges only with the effect of language and concepts that are believed to exist even in infancy fade away due to the language learned.
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  • In conclusion, there is a nested relationship between language and thought. In the interaction processes mentioned above, the role of language changes. Even though the limits of our language are different from the limits of our thinking, it is inevitable that people prioritize concepts in their languages. This, however, does not mean that they cannot comprehend or think about concepts that do not exist in their language.
Javier E

René Girard has many Silicon Valley disciples... - Berfrois - 1 views

  • A student of Girard’s while at Stanford in the late 1980s, Thiel would go on to report, in several interviews, and somewhat more sub-rosa in his 2014 book, From Zero to One, that Girard is his greatest intellectual inspiration. He is in the habit of recommending Girard’s Things Hidden Since the Foundation of the World (1978) to others in the tech industry.
  • Michel Serres, another French theorist long resident at Stanford, and a strong advocate for Girard’s ideas, has described Girard as the “Darwin of the human sciences”, and has identified the mimetic theory as the relevant analog in the humanities of the Darwinian theory of natural selection.
  • For Girard, everything is imitation. Or rather, every human action that rises above “merely” biological appetite and that is experienced as desire for a given object, in fact is not a desire for that object itself, but a desire to have the object that somebody else already has
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  • The great problem of our shared social existence is not wanting things, it’s wanting things because they are someone else’s.
  • Desire for what the other person has brings about a situation in which individuals in a community grow more similar to one another over time in a process of competition-cum-emulation. Such dual-natured social encounters, more precisely, are typical of people who are socially more or less equal
  • In relation to a movie star who does not even know some average schlub exists, that schlub can experience only emulation (this is what Girard calls “external mediation”), but in relation to a fellow schlub down the street (a “neighbor” in the Girardian-Biblical sense), emulation is a much more intimate affair (“internal mediation”, Girard calls it)
  • This is the moment of what Girard calls “mimetic crisis”, which is resolved by the selection of a scapegoat, whose casting-out from the community has the salvific effect of unifying the opposed but undifferentiated doubles
  • In a community in which the mimetic mechanism has led to widespread non-differentiation, or in other words to a high degree of conformity, it can however happen that scapegoating approaches something like the horror scenario in Shirley Jackson’s 1948 tale, “The Lottery”
  • As a modest theory of the anthropology of punishment, these observations have some promise.
  • he is a practically-minded person’s idea of what a theorist is like. Girard himself appears to share in this idea: a theorist for him is someone who comes up with a simple, elegant account of how everything works, and spends a whole career driving that account home.
  • Girard is not your typical French intellectual. He is a would-be French civil-servant archivist gone rogue, via Bloomington, Baltimore, Buffalo, and finally at Stanford, where his individual brand of New World self-reinvention would be well-received by some in the Silicon Valley subculture of, let us say, hyper-Whitmanian intellectual invention and reinvention.
  • Most ritual, in fact, strikes me as characterized by imitation without internal mediation or scapegoating.
  • I do not see anything more powerfully explanatory of this phenomenon in the work of Girard than in, say, Roland Barthes’s analysis of haute-couture in his ingenious 1967 System of Fashion, or for that matter Thorstein Veblen on conspicuous consumption, or indeed any number of other authors who have noticed that indubitable truth of human existence: that we copy each other
  • whatever has money behind it will inevitably have intelligent-looking people at least pretending to take it seriously, and with the foundation of the Imitatio Project by the Thiel Foundation (executive director Jimmy Kaltreider, a principal at Thiel Capital), the study and promotion of Girardian mimetic theory is by now a solid edifice in the intellectual landscape of California.
  • with Girard what frustrates me even more is that he does not seem to detect the non-mimetic varieties of desire
  • Perhaps even more worrisome for Girard’s mimetic theory is that it appears to leave out all those instances in which imitation serves as a force for social cohesion and cannot plausibly be said to involve any process of “internal mediation” leading to a culmination in scapegoating
  • the idea that anything Girard has to say might be particularly well-suited to adaptation as a “business philosophy” is entirely without merit.
  • dancing may be given ritual meaning — a social significance encoded by human bodies doing the same thing simultaneously, and therefore in some sense becoming identical, but without any underlying desire at all to annihilate one another. It is this significance that the Australian poet Les Murray sees as constituting the essence of both poetry and religion: both are performed, as he puts it, “in loving repetition”.
  • There are different kinds of theorist, of course, and there is plenty of room for all of us. It is however somewhat a shame that the everything-explainers, the hammerers for whom all is nail, should be the ones so consistently to capture the popular imagination
  • Part of Girard’s appeal in the Silicon Valley setting lies not only in his totalizing urge, but also in his embrace of a certain interpretation of Catholicism that stresses the naturalness of hierarchy, all the way up to the archangels, rather than the radical egalitarianism of other tendencies within this faith
  • Girard explains that the positive reception in France of his On Things Hidden Since the Foundation of the World had to do with the widespread misreading of it as a work of anti-Christian theory. “If they had known that there is no hostility in me towards the Church, they would have dismissed me. I appeared as the heretic, the revolted person that one has to be in order to reassure the media
  • Peter Thiel, for his part, certainly does not seem to feel oppressed by western phallocracy either — in fact he appears intent on coming out somewhere at the top of the phallocratic order, and in any case has explicitly stated that the aspirations of liberal democracy towards freedom and equality for all should rightly be seen as a thing of the past. In his demotic glosses on Girard, the venture capitalist also seems happy to promote the Girardian version of Catholicism as a clerical institution ideally suited to the newly emerging techno-feudalist order.
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