Feedback in Cause and Effect
Social Psychology 101 stresses the interconnectedness of cause and effect in human mediated systems. It’s not just that cause begets effect but effect then begets cause which begets effect which … yeah, well, you get the idea.
The investor George Soros has taken this idea and used it to become mindbogglingly rich. He sees behavioral economics as only one part of a better description of our financial system: it explains how causes create effects but not how they feedback on each other. To explain that we need to look at what he calls economic reflexivity.
Social Psychology 101 stresses the interconnectedness of cause and effect in human mediated systems. It’s not just that cause begets effect but effect then begets cause which begets effect which … yeah, well, you get the idea.
The investor George Soros has taken this idea and used it to become mindbogglingly rich. He sees behavioral economics as only one part of a better description of our financial system: it explains how causes create effects but not how they feedback on each other. To explain that we need to look at what he calls economic reflexivity.