Home
/
RELIGION & LIBERTY ONLINE
/
Is behavioral economics blind to its blindness?
Is behavioral economics blind to its blindness?
Feb 12, 2026 3:04 AM

I find some of the work of behavioral economists, especially that of Daniel Kahneman to be very interesting and important. Thinking Fast and Slow is essential reading. His distinctions between what he calls Type I and Type II thinking is very insightful, and the broad critique that human beings don’t always act like rational maximizers is a correct. Jennifer Roback Morse deals with this issue well in her excellent book, Love and Economics.

Yet despite many good elements of behavioral economics, some of the leading voices including Richard Thaler and Dan Ariely seem to identify the limited, empiricist rationality that they critique in the idea of homo economicus with rationality itself. That is, they appear equate a constricted notion of reason with rationality and then assert that people don’t always act rationally. Of course it is true that people don’t always act rationally. We make mistakes of intuition all the time as Kahneman points out.

But we have to be also consider that if we had a broader notion of reason that was not limited to empiricism or to rational maximization, some of those so called mistakes could be perfectly rational. I also worry that behavioral economists can fall into the trap of not applying their theory to their own conclusions. Perhaps they are just a bit blind to the obvious…

Are we blind about our blindness?

Related to the this, here is an interesting piece on Aeon by Oxford Management professor, Teppo Felinon The Fallacy of Obviousness. This is a wide ranging piece that addresses some the limited view of rationality and some of the underlying materialism of behavioral economics, cognitive sciences, and artificial intelligence. One of the questions Fellin addresses is the notion that humans are blind to the obvious which underlies much of the work of Kahneman and the behavioral economists.

Felin uses the example of the famous gorilla test by psychologists Daniel Simons and Christopher Charbis. (Spoiler alert–if you haven’t taken this test and want to, stop and take it and then continue reading)

Did you see the gorilla? If not, you are not alone. Many people missed it.

In case you didn’t watch it here’s how the test goes: The Gorilla Test is a test about our attention and how we can miss very obvious things. Test takers watch a video of people passing a ball and told to count how many times they pass the ball. During the middle of the video a person dressed in a gorilla suit walks into view, pounds his chest, and walks off. You can’t miss it. Except or course, people do. This test has been used to demonstrate that we make many errors in perception. Behavioral economists like Daniel Kahneman have pointed to this experiment as an example of how human beings are “blind to the obvious, and that we also are blind to our blindness.”

True as far as it goes, but as Felin points out, we don’t only miss the gorilla, we miss lots of things. We miss the color of people’s shoes, the color of the paint on the wall, how many of the players were men or women. We miss these things not only because we miss the obvious, but because we were specifically told to focus on a certain thing—counting the balls. If we were told to focus on the color of each person’s shoes, we would not have known how many times they passed the ball.

Missing the gorilla may we we are blind to the obvious. But what else does it mean? Felin argues there is another interpretation:

The alternative interpretation says that what people are lookingfor– rather than what people are merely lookingat– determines what is obvious. Obviousness is not self-evident. Or as Sherlock Holmes said: ‘There is nothing more deceptive than an obvious fact.’ This isn’t an argument against facts or for ‘alternative facts’, or anything of the sort. It’s an argument about what qualifies as obvious, why and how. See, obviousness depends on what is deemed to be relevant for a particular question or task at hand. Rather than passively accounting for or recording everything directly in front of us, humans – and other organisms for that matter – instead actively lookforthings. The implication (contrary to psychophysics) is that mind-to-world processes drive perception rather than world-to-mind processes. The gorilla experiment itself can be reinterpreted to support this view of perception, showing that what we see depends on our expectations and questions – what we are looking for, what question we are trying to answer.

As Felin and others have pointed out, what we are told to focus on, and equally important, our underlying assumptions, values, and beliefs shape how we see the world. This is an underlying problem with the dominant approach to the social sciences in general and related to the point that Benedict XVI made in the famous Regensburg Address, that our concept of rationality is constricted and incoherent.

None of this implies that humans don’t make mistakes or are always rational even under a broad concept of rationality. Using right reason is not easy and we make mistakes all the time. The point here is that what we focus on, and the frameworks that we use to look at a problem, the assumptions and beliefs we have, what Durkheim calls a “social fact” shape the way we see the world and what es obvious or not. I am not suggesting that everything is therefor relative, but one’s perspective does influence our understanding and what we see or do not see

Felin writes:

The biologist Jakob von Uexküll (1864-1944) argued that all species, humans included, have a unique ‘Suchbild’ – German for a seek- or search-image – of what they are looking for. In the case of humans, this search-image includes the questions, expectations, problems, hunches or theories that we have in mind, which in turn structure and direct our awareness and attention. The important point is that humans do not observe scenes passively or neutrally. In 1966, the philosopher Karl Popper conducted an informal experiment to make this point. During a lecture at the University of Oxford, he turned to his audience and said: ‘My experiment consists of asking you to observe, here and now. I hope you are all cooperating and observing! However, I feel that at least some of you, instead of observing, will feel a strong urge to ask: “Whatdo you want me to observe?”’ Then Popper delivered his insight about observation: ‘For what I am trying to illustrate is that, in order to observe, we must have in mind a definite question, which we might be able to decide by observation.’

In other words, there is no neutral observation. The world doesn’t tell us what is relevant. Instead, it responds to questions. When looking and observing, we are usually directedtowardsomething, toward answering specific questions or satisfying some curiosities or problems

There could be some debate about neutral observation. There could be an occasion when a person could be observing without a specific focus and discover something he had not previously noticed. But even then it is a specific, unique individual in a specific context that is doing the observation.And the general point holds that our decisions about what to analyze, what data to collect, and puter algorithms to write are all shaped by previous ideas. Technology is not neutral.

This is an important topic that has broad implications for the social sciences and for how we understand artificial intelligence and consciousness. Ultimately much of es down to fundamental questions about philosophical anthropology and the nature of reason.Definitely worth reading the whole thing.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Understanding Austrian economics
Carl Menger (1840-1921) | Wikimedia Commons The central theme of the Austrian tradition, which might better be called the liberal tradition, is that society runs itself. This is strongly linked to the idea of freedom in the liberal sense, meaning the opportunity for the individual to advance and to create wealth. Jeffrey Tucker, Director of Content at FEE (Foundation for Economic Education) argues that the Austrian school started by Carl Menger revived an old method of thinking in the liberal...
We’re all Dead: How J.M. Keynes – And His Critics – Went Wrong
“Critics of John Maynard Keynes were so determined his economics were wrong that they allowedKeynes to dictate the terms of the debate,” says Victor Claar, professor of economics atHenderson State University, in his Acton University lecture. He continues to describe Keynes flawed anthropology with respect to classical economists and the Great Depression. Key observations of human nature include the principles of work, property, exchange, and division of labor. We can survive and prosper, take ownership of our work, support and...
Radio Free Acton: Brexit’s Aftermath with Todd Huizinga
Last week on Radio Free Acton, we sat down with Acton Institute Director of International Outreach Todd Huizinga to preview the ing Brexit referendum in the United Kingdom. This week, we’re back again with Todd to review the stunning results of the referendum, the reactions to it in boththe United Kingdom and the European Union, and the prospects for EU reform and British prosperity in the near and long-term future. You can listen to the podcast via the audio player...
Is Shifting The Justice Reform Burden Better?
The brokenness of America’s criminal justice system is not just an urban issue. Working class defendants in small towns across America are vulnerable to system that does not protect them from government negligence. For example, New York’s state legislature approved new indigent defense measures last week that finished an almost decade long battle over statewide indigent defense problems. The case began with a 2007 lawsuit by the NY Civil Liberties Union on behalf of several indigent defendants (Hurrell-Harring et al....
New Acton Commentary: Economics not Great at Orthodox Council
Recently, The Holy and Great Council of the Orthodox Church was held in Crete, culminating in a document titled “The Mission of the Orthodox Church in Today’s World”. In the most recent Acton Commentary, research fellow and managing editor of the Journal of Markets & Morality Dylan ments on the flaws in economic principles and guidelines espoused in the document. In framing the criticism, Pahman argues that “the statement’s economic pronouncements range from ambiguous and questionable to both wrong and...
What motivated ‘leave’ voters in Brexit?
In the wake of the British vote to leave the European Union, many are wondering what led the majority of voters to affirm the Brexit. In mentary Brexit: Against the Political Class, Samuel Gregg points out mon element in all of the motivations behind the “Leave” decision: a frustration with established career politicians. Gregg writes: The reasons why a majority of British voters decided that their nation was better off outside the European Union were many and not always in...
The unintended consequences of clothing donations
A recent article in the Wall Street Journal focuses on the market for the global clothing donation and recycling industry, centering on the trade from the United States to India. One of the most immediately striking elements of the piece are the photographs that pany it, featuring piles and piles of used clothing on large trucks and people picking through the mountains of fabric taller than they are. The quantity of donated clothing is astounding. These pictures show a fraction...
Video: Vernon Smith on Faith and the Compatibility of Science and Religion
Acton University is a unique conference, a fact noted by Nobel Economics Laureate Vernon L. Smith, who used his appearance on Wednesday, June 15 as an opportunity to “speak on a topic that my fellow economists would never have asked me to speak on”: religious faith and patibility with modern science. We’re pleased to present Smith’s lecture below. ...
C.S. Lewis and the root of power philosophy
C.S. Lewis is probably best known for his work in children’s literature and Christian apologetics. “Mere Christianity,” “The Problem of Pain” and “The Abolition of Man” are among his most popular works, but he has many more valuable essays regarding truth and Christianity which are not as widely read. A favorite lecture of mine, titled “The Poison of Subjectivism”, is found in his collected essays, “Christian Reflections.” After leaving Malvern College in June 1913, Lewis (or Jack as he preferred...
The Costs of Jailing Teens
In early June 2016, Matthew Bergman, 15, allegedly admitted to police that he killed his aunt and stabbed his mother in Davidson County, Tennessee near Nashville. When mit crimes in the suburbs or in urban areas, experts are ambivalent about what to with them because of the long-term consequences of youth incarceration. Low munities get hit the hardest. Since the 1980s juvenile incarceration rates have increased steadily creating a phenomenon often referred to as the “school-to-prison pipeline.” There are many...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved