Scientific Definition
Subjects often converge to neoclassical predictions only after many rounds of feedback — not on the first try.
Plain-English Definition
Subjects often converge to neoclassical predictions only after many rounds of feedback — not on the first try.
Feynman Explanation
Markets are rational eventually. Round one is a mess.
Core Principle
Subjects often converge to neoclassical predictions only after many rounds of feedback — not on the first try.
Mechanisms
Pending editorial review.
Subjects often converge to neoclassical predictions only after many rounds of feedback — not on the first try.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Launching pricing, new comp plans, or new marketplace rules.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
Markets are rational eventually. Round one is a mess.
Examples
- Camerer & Loewenstein: 'equilibrium' analyses use last-period data, not initial play.
- Launching pricing, new comp plans, or new marketplace rules.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Plan for the learning curve. Don't judge a mechanism on its first cohort.
Measurement Approaches
Pending editorial review.
Evidence
Pending editorial review.
Pending editorial review.
The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
- Plan for the learning curve. Don't judge a mechanism on its first cohort.
Pending editorial review.
Pending editorial review.
Interactive Mini Network
Click any neighbor to re-center the graph and follow the threads of connection.
Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
Systems maintain stability by self-regulating around a setpoint.
A state where no player benefits from changing strategy unilaterally.
A behavioral relaxation of Nash: players choose better strategies more often, but not always — errors are smooth, not binary.
Systems that gain from disorder.
Approach motivation — pursuit of rewards and goals.
Avoidance motivation — sensitivity to punishment, uncertainty, and threat.
Map reinforcing (R) and balancing (B) feedback loops between variables to see system behavior.
A system with many interacting parts that learn and adapt.
Many interacting parts producing emergent behavior nobody designed.
Single-loop fixes the action. Double-loop questions the goal or model that produced it.
System 1 is fast, automatic, intuitive; System 2 is slow, effortful, deliberate.
Interdependent network of actors evolving together.