Irrational choices: humans error-prone in loss-related decisions in our design

A video presentation of a brilliant experiment conducted by Yale Psychology Professor Laurie Santos. Santos finds that our error-proneness, at least for decisions related to losses, appears to be part of our innate cognitive design — something wired in our cognitive machinery for reasons having to do with evolutionary survival as early as 35-million years.

In a nutshell, humans & their distant cousins think in terms of loss, loss aversion & relativity even in circumstances when thinking in those terms is to their detriment. The experiment creates a Capuchin money market, with money, trade and gambles!

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