Modelling motivation: rationality, signaling and bias - Deepstash

Modelling motivation: rationality, signaling and bias

  • Rational choice theory suggests that human behaviour is underpinned by the motivations of each individual. More specifically, this theory models human beings as utility-maximizers, according to a set of preferences. If you give people a set of actions to choose from, they will do whatever improves their utility the most.
  • Signalling is the idea of taking an action because of what it communicates about you. For example, we care more for credentials in education than learning.
  • The prospect theory states that we are reliably irrational in our decision-making. One possible bias is loss aversion that argues that we'll work harder to avoid losses than to get equivalent gains.

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