9 Networked Minds
177
create new opportunities. It becomes possible, for example, to overcome “tragedies
of the commons” and to support the generation of collective intelligence.
9.1 Modeling Decision-Making: The Hidden Drivers
of Our Behavior
One of the best-known models of human decision-making so far is that of “homo
economicus”. It is based on the assumption that humans and firms are completely
egoistic, rationally striving to maximize their utility in every situation. The “utility
function” supposedly quantifies the payoffs (i.e. earnings) or individual preferences
of every actor. Any behavior deviating from such selfish utility maximization is
believed to be irrational and to create disadvantages. The obvious conclusion—
sometimes referred to as “economic Darwinism”—is that humans or companies
who aren’t selfish would ultimately lose the evolutionary race with those who are.
Thus, natural selection is expected to eliminate other-regarding behavior based on
the principle of the “survival of the fittest”. Therefore, it seems absolutely logical to
assume that everyone acts selfishly and optimizes the own payoff.
For those who are familiar with this conventional economic model of human
behavior, it may come as a surprise that it does not stand up to empirical scrutiny.
Appendix 9.1 shows that this model is actually quite misleading. Therefore, I am
offering a new, multi-faceted explanation of human decision-making in the following.
I argue that self-regarding rational choice is just one possible mode of decisionmaking. Human decisions are often driven by other factors in ways that make it
impossible to integrate them all in one “utility function”. Trying to do this, as it is
common, compares “apples with oranges”. Instead, I claim that people are driven by
a variety of different incentive systems, and that they switch between them. In fact,
rational decision-making is commonly believed to take place in the neocortex—
our most powerful brain area. But there are other parts of the brain (such as the
cerebellum), which were in control before and might still sometimes be. Thus, it is
my contention that there are many other drivers governing people’s behavior.
9.2 Sex, Drugs and Rock ‘n Roll
It is clear that the first and foremost priority of our body is to ensure our survival,
for example, to watch out for enough water and food. To achieve this, our body
produces the feelings of hunger and thirst. If we don’t drink or eat for a long time, it
will be pretty difficult to focus on mathematical calculations, strategic thinking, or
maximizing payoff.
Our sexual desires are similarly strong. There is an obvious, natural drive to engage
in reproduction, and many people who are deprived of sexual opportunities may find
177
create new opportunities. It becomes possible, for example, to overcome “tragedies
of the commons” and to support the generation of collective intelligence.
9.1 Modeling Decision-Making: The Hidden Drivers
of Our Behavior
One of the best-known models of human decision-making so far is that of “homo
economicus”. It is based on the assumption that humans and firms are completely
egoistic, rationally striving to maximize their utility in every situation. The “utility
function” supposedly quantifies the payoffs (i.e. earnings) or individual preferences
of every actor. Any behavior deviating from such selfish utility maximization is
believed to be irrational and to create disadvantages. The obvious conclusion—
sometimes referred to as “economic Darwinism”—is that humans or companies
who aren’t selfish would ultimately lose the evolutionary race with those who are.
Thus, natural selection is expected to eliminate other-regarding behavior based on
the principle of the “survival of the fittest”. Therefore, it seems absolutely logical to
assume that everyone acts selfishly and optimizes the own payoff.
For those who are familiar with this conventional economic model of human
behavior, it may come as a surprise that it does not stand up to empirical scrutiny.
Appendix 9.1 shows that this model is actually quite misleading. Therefore, I am
offering a new, multi-faceted explanation of human decision-making in the following.
I argue that self-regarding rational choice is just one possible mode of decisionmaking. Human decisions are often driven by other factors in ways that make it
impossible to integrate them all in one “utility function”. Trying to do this, as it is
common, compares “apples with oranges”. Instead, I claim that people are driven by
a variety of different incentive systems, and that they switch between them. In fact,
rational decision-making is commonly believed to take place in the neocortex—
our most powerful brain area. But there are other parts of the brain (such as the
cerebellum), which were in control before and might still sometimes be. Thus, it is
my contention that there are many other drivers governing people’s behavior.
9.2 Sex, Drugs and Rock ‘n Roll
It is clear that the first and foremost priority of our body is to ensure our survival,
for example, to watch out for enough water and food. To achieve this, our body
produces the feelings of hunger and thirst. If we don’t drink or eat for a long time, it
will be pretty difficult to focus on mathematical calculations, strategic thinking, or
maximizing payoff.
Our sexual desires are similarly strong. There is an obvious, natural drive to engage
in reproduction, and many people who are deprived of sexual opportunities may find