FM Waves

I think long time ago I tried to explain you the relationship between economics and psychology (further than me, an economist, marrying a psychologist). I recall the main argument was the rationality premise attached to orthodox economics was assumed as wrong (who’s ever seen an homo oeconomicus?). As I said, “orthodox”; that’s right, some people would say “bounded rationality”…, no!, even when you aren’t (apparently) a rational being, you are being one.

So, please let me introduce you to the last work coming from game theory, one of the areas where economists and psychologist better match. From an article from the Economist (Money isn’t everything), we can get the idea why we would “spite” (see this post at Punk Rock OR) to a miserable offer. The probable answer: too much testosterone, mates! (it’s the animal sense).