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# Wiki Contributions

Rational to distrust your own rationality?

SOLVED!

They are using a basic decision making process that works great in real life (uncertain probabilities) but not great in experiments like these (known certain probabilities). This decision making processes works so well in real life that it's probably become second nature for most people and they do it without thinking. People are not inconsistent!

Step 1 - Remove potential choices that could turn out bad. (choices with a significantly lower worst case scenarios than other choices)

Step 2 - Of the remaining choices, pick the choice that has the best best case scenario.

1A: WorstCaseSenario = 1 million BestCaseSenario = 1 million

1B: WorstCaseSenario = I get nothing BestCaseSenario = 5 million

2A: WorstCaseSenario = I get nothing BestCaseSenario = 1 million

2B: WorstCaseSenario = 1 get nothing BestCaseSenario = 5 million

This alone explains the decisions but there is an added effect that enhances it. 1\$ DOES NOT equal 1 standard unit of happiness. The quality of life enhancement from having 1 million to having 2 million is not the same difference as the quality of life enhancement from no money to 1 million. I expect most people intuitively know this but here's an article siting a study that supports this.

http://www.time.com/time/magazine/article/0,9171,2019628,00.html