Rationality as a Process.

Mario J. Rizzo and Glen Whitman

In Rationality as a Process, Mario J. Rizzo and Glen Whitman argue that human decision-making should be seen as a dynamic process rather than a static property. Traditional economic models often present rationality as a fixed state, either labeling individuals as rational or irrational based on their adherence to certain criteria at a moment in time. However, the authors suggest that rationality evolves through processes like learning, error correction, and intrapersonal bargaining, which unfold over time.

I found three Interesting Takeaways

1. Rationality Evolves, It’s Not Static
   The article emphasizes that rationality isn’t a fixed trait; it’s a process that individuals refine through experience. People make decisions in a continuous loop of learning and adjusting based on feedback and errors, rather than instantly arriving at a perfect solution.
2. Intrapersonal Bargaining
   Rizzo and Whitman explore how individuals engage in “internal arbitrage,” balancing conflicting desires or values between their current and future selves. This perspective shifts the focus from labeling people as irrational to understanding how they negotiate with themselves over time.
3. Errors Drive Learning
   Instead of viewing errors as signs of irrationality, the authors argue that errors are essential to learning and adapting. Mistakes help refine decision-making processes, making rationality a more fluid concept tied to growth rather than a fixed standard.

This process-based view challenges static models and provides a more realistic understanding of human behavior, which is particularly relevant in behavioral science.

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