Ah, the joys of reading…
Alan Greenspan, chairman of the Federal Reserve Bank, was recently quoted as saying, in reference to market events, that “Our economic models have never been particularly successful in capturing a process driven in large part by nonrational behavior.” For example, faced with a decision between two equally valued objects, subjects will often chose a different, lesser valued object to avoid making a decision between the two more similar ones (Tversky and Shafir, 1992).1
- J. Cohen, K. Blum : Neuron : 2002 : Reward and Decision↩