Tuesday, December 15, 2009

Bacteria provide new insights into human decision making

Have a hard time believe I am linking to an article on bacteria for Finance, but it is similar in ways to passive investing. If everyone is doing it, you have an incentive to not do it, but if no one is doing it, you have an incentive to do it.

Bacteria provide new insights into human decision making:
"'We have developed for the first time a system level model of a large gene network to decipher the underlying principles of the bacteria game theory and how an internal network of genes and proteins is used to calculate risks in this complicated situation,' he said.

This has applications to human society because many people encounter similar dilemmas during their own lives. For example, should people ignore side effects and vaccinate against a new potentially lethal virus or should they not vaccinate and take the risk of being infected with the possible consequences? If the majority of the population is going to get vaccinated, then it is better for each individual not to get vaccinated. However, if most people will not be vaccinated then it is better to be vaccinated."

To which I would add, it is also similar to passive investing.

3 comments:

Anonymous said...

Great Find, i posted a link on my blog Farnam Street

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bal marxism said...

there is a small world in our body ..
nice info.
thx