Evolutionary Finance

He who read the book “The Social Swan – where Kahneman, Taleb and Darwin meet Marx” has expanded both his educational horizon as well as his fundus of inspiration about what “economics” is or may be by leaps and bounds.

In addition to many social mechanisms that are presented there and left to understand, it becomes obvious that there is always and everywhere about “Resources” in life – because renewal, reproduction and survival depend on them. Ownership of resources accumulated to “capital”.
Capital includes much more than just immediate financial assets – money depends on belief in its value and is correspondingly uncertain.
Also on “cash benefits” granted, usually one must pay taxes.

Human emotions mostly are closely related to a resource.

A completely indifferent and preference free person will of course not carry out any economical significant decisive behavior.
However, one who likes to discover preference structures should effectively consider with emotions as well as cognitions.
This is indispensible, as human aspirations as well as calculations about their appropriate satisfaction can be understood.

Without emotions hardly a day can be survived.
The fact that people can have very intense emotions, can daily be observed on “freaky” behavior, that someone evinces – to get a little impression from the dimensions, it is sufficient to watch a few videos on YouTube.com. Some examples might inspire, others horrify.

Feelings cannot be chosen. This is a paradox. Even if one could choose which emotions he had, he did so on the basis of already existing emotions.

Money is not everything. Money is just a means to satisfy emotions. That is what one spends it for. Where emotions can be satisfied directly, for instance if in a Dictator or Ultimatum Game a so-called “unfair” offer can be declines and lust can be drawn from the “punishment” of a first player, with which a lesson can be “taught”, a detour via money would be inefficient.

He who want to know more about evolution and cognition, game theory, populationecology and anthropology and would like to expand his definition of economics, this is the route:
florian@florianwillet.com
Subject line: EF