9.4 Lessons Learned
179
This is also the reason why the Roman concept of “bread and circuses” (whereby
the public is best appeased by satisfying their basic needs and entertaining them) is
so enduring.
The above observations have important implications. It’s too simple to assume that
humans would just maximize their payoffs. We are driven by a variety of different
incentive and reward systems. Humans have evolved in a way, which makes them
strive to satisfy many different multi-faceted desires, which are often mutually incompatible. We engage in survival, reproduction, spreading of ideas and other goals. This
gives rise to multiple different goals, which steadily compete with each other.
In addition, the importance of the different reward systems varies from one person
to the next. This implies different preferences and personalities (“characters”). Some
people are driven to possess as much as they can, while others prefer to explore their
intellectual cosmos. Further people prefer “carnal” pursuits such as sex or sports. If
nothing grants satisfaction over a long period of time, an individual might turn to
drugs, get sick, or even die.
9.5 Suddenly, “Irrational Behavior” Makes Sense
In other words, if we move beyond the concept of self-regarding rational choice, the
behavior of intellectuals, sportsmen, sex addicts, divas and other “special” people
suddenly becomes understandable. In such cases, one reward system takes precedence over the others. For most people, however, all of these rewards are important.
But this does not mean that it is possible to define one personal utility function, which
stays constant over time (or changes slowly). Instead I believe that, at any point in
time, one kind of reward is given priority and the others are temporarily relegated.
Once this reward has been gained, another desire is given priority to, and so on. This
might be compared to how competing traffic flows are managed at an intersection—
temporarily prioritizing one flow after another. Once a queue of vehicles has been
cleared, another one is prioritized by giving it a green light. Similarly, when one of
our desires has been satisfied, we give priority to another one et cetera, until the first
drive becomes strong again and demands our attention.
We can also understand what happens when people are deprived, meaning that
they cannot satisfy one of their desires for a long time. In such cases, it stands
to reason that they try to compensate for this lack of satisfaction with other kinds
of rewards. For example, some people may find it rewarding to eat or go shopping, when they are frustrated. But options for compensation are more restricted for
people in poor economic conditions. If they cannot derive pleasure from consumption and possessions, from social recognition, or from intellectual activities, then,
sexual adventures, adrenaline flashes or other kicks may become more important.
The results may be prostitution, violence, hooliganism, crime, or drug consumption.
Therefore, a better understanding of human nature and decision-making, as I have
proposed it above, may enable us to address long-standing social problems in entirely
new ways, benefiting society as a whole.
179
This is also the reason why the Roman concept of “bread and circuses” (whereby
the public is best appeased by satisfying their basic needs and entertaining them) is
so enduring.
The above observations have important implications. It’s too simple to assume that
humans would just maximize their payoffs. We are driven by a variety of different
incentive and reward systems. Humans have evolved in a way, which makes them
strive to satisfy many different multi-faceted desires, which are often mutually incompatible. We engage in survival, reproduction, spreading of ideas and other goals. This
gives rise to multiple different goals, which steadily compete with each other.
In addition, the importance of the different reward systems varies from one person
to the next. This implies different preferences and personalities (“characters”). Some
people are driven to possess as much as they can, while others prefer to explore their
intellectual cosmos. Further people prefer “carnal” pursuits such as sex or sports. If
nothing grants satisfaction over a long period of time, an individual might turn to
drugs, get sick, or even die.
9.5 Suddenly, “Irrational Behavior” Makes Sense
In other words, if we move beyond the concept of self-regarding rational choice, the
behavior of intellectuals, sportsmen, sex addicts, divas and other “special” people
suddenly becomes understandable. In such cases, one reward system takes precedence over the others. For most people, however, all of these rewards are important.
But this does not mean that it is possible to define one personal utility function, which
stays constant over time (or changes slowly). Instead I believe that, at any point in
time, one kind of reward is given priority and the others are temporarily relegated.
Once this reward has been gained, another desire is given priority to, and so on. This
might be compared to how competing traffic flows are managed at an intersection—
temporarily prioritizing one flow after another. Once a queue of vehicles has been
cleared, another one is prioritized by giving it a green light. Similarly, when one of
our desires has been satisfied, we give priority to another one et cetera, until the first
drive becomes strong again and demands our attention.
We can also understand what happens when people are deprived, meaning that
they cannot satisfy one of their desires for a long time. In such cases, it stands
to reason that they try to compensate for this lack of satisfaction with other kinds
of rewards. For example, some people may find it rewarding to eat or go shopping, when they are frustrated. But options for compensation are more restricted for
people in poor economic conditions. If they cannot derive pleasure from consumption and possessions, from social recognition, or from intellectual activities, then,
sexual adventures, adrenaline flashes or other kicks may become more important.
The results may be prostitution, violence, hooliganism, crime, or drug consumption.
Therefore, a better understanding of human nature and decision-making, as I have
proposed it above, may enable us to address long-standing social problems in entirely
new ways, benefiting society as a whole.