ABSTRACT
T he discussion of the previous chapter makes rational choice appear cut and dry. Our decisions, if based on the maximization of expectation, produce the best results in the long run and are rational as well for one shot (single-play) decisions. But why do we sometimes choose actions contrary to the maximization of expectation? Because we are human! Human decisions come with fears, emotions, subjective evaluations of risk, and other psychological components that compel us to behave not as suggested in the previous two chapters, but rather in ways from which we derive more comfort. Cold, calculated rational choices are often replaced by doing what feels right. The bumper sticker on the back of the 1960s VW bus reads, “If it feels good, do it!” And we do!
