Picoeconomics Quotes

“Here is what a person is: a set of basically compatible long-range interests that have co-opted a sufficient army of short-range interests into their coalition to maintain stable equilibrium. A person is that person just so long as her revealed preferences at the whole-person level don’t significantly cycle. This is why we can model people as (nonstraightforward) economic agents—just as we sometimes can, and should, model countries. Of course, a biological H. sapiens individual goes through changing external circumstances during its biography, so no one coalition of interests will stay in power forever. Becker and other mature anthropocentric neoclassicists have missed this point, whereas a Samuelsonian neoclassicist can accept it without difficulty. At the same time, the social pressures that discipline self-narratives tend to make people more and more like straightforward economic agents for increasing stretches of their biographies. These pressures are not external to their personal utility functions, as Sen supposes. They are what make (whole-) personal utility functions possible in the first place. Society does not struggle to civilize inner Robinson Crusoes, for people don’t biologically have such things. Instead, human society gives rise to something new under the evolutionary sun: creatures that act increasingly like the economic agents familiar among our asocial relatives, who nevertheless turn the trick of achieving the powerful network efficiencies that the asocial cannot.”
― Don Ross

“Principles of choice, or “personal rules,” represent self-enforcing contracts with your future motivational states; such contracts depend on your seeing each current choice as a precedent that predicts how you’re apt to choose among similar options in the future. Short-range interests evade personal rules by proposing exceptions that might keep the present case from setting a precedent. The will is a recursive process that bets the expected value of your future self-control against each of your successive temptations.”
― George Ainslie, Breakdown of Will