“The assumption of perfectly rational, maximizing behavior won out until recently in the art of modeling, not because it often reflects reality, but because it was useful.”

Source: Why Stock Markets Crash - Critical Events in Complex Systems (2003), Chapter 5, Modeling Financial Bubbles And Market Crashes, p. 138.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "The assumption of perfectly rational, maximizing behavior won out until recently in the art of modeling, not because it…" by Didier Sornette?
Didier Sornette photo
Didier Sornette 27
French scientist 1957

Related quotes

Nassim Nicholas Taleb photo

“Heroes are heroes because they are heroic in behavior, not because they won or lost.”

Nassim Nicholas Taleb (1960) Lebanese-American essayist, scholar, statistician, former trader and risk analyst

Source: Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets

Olivier Blanchard photo
Richard A. Posner photo

“Barnard comes close to joining Roethlisberger and Dickson in their assumption that management behavior is mainly rational and workers' behavior nonrational.”

Charles Perrow (1925–2019) American sociologist

Source: 1970s, Complex organizations, 1972, p. 88

Albert Hofmann photo

“There are experiences that most of us are hesitant to speak about, because they do not conform to everyday reality and defy rational explanation.”

Albert Hofmann (1906–2008) Swiss chemist

Foreword http://www.psychedelic-library.org/childf.htm
LSD : My Problem Child (1980)
Context: There are experiences that most of us are hesitant to speak about, because they do not conform to everyday reality and defy rational explanation. These are not particular external occurrences, but rather events of our inner lives, which are generally dismissed as figments of the imagination and barred from our memory. Suddenly, the familiar view of our surroundings is transformed in a strange, delightful, or alarming way: it appears to us in a new light, takes on a special meaning. Such an experience can be as light and fleeting as a breath of air, or it can imprint itself deeply upon our minds.
One enchantment of that kind, which I experienced in childhood, has remained remarkably vivid in my memory ever since. It happened on a May morning — I have forgotten the year — but I can still point to the exact spot where it occurred, on a forest path on Martinsberg above Baden, Switzerland. As I strolled through the freshly greened woods filled with bird song and lit up by the morning sun, all at once everything appeared in an uncommonly clear light. Was this something I had simply failed to notice before? Was I suddenly discovering the spring forest as it actually looked? It shone with the most beautiful radiance, speaking to the heart, as though it wanted to encompass me in its majesty. I was filled with an indescribable sensation of joy, oneness, and blissful security.
I have no idea how long I stood there spellbound. But I recall the anxious concern I felt as the radiance slowly dissolved and I hiked on: how could a vision that was so real and convincing, so directly and deeply felt — how could it end so soon? And how could I tell anyone about it, as my overflowing joy compelled me to do, since I knew there were no words to describe what I had seen? It seemed strange that I, as a child, had seen something so marvelous, something that adults obviously did not perceive — for I had never heard them mention it.
While still a child, I experienced several more of these deeply euphoric moments on my rambles through forest and meadow. It was these experiences that shaped the main outlines of my world view and convinced me of the existence of a miraculous, powerful, unfathomable reality that was hidden from everyday sight.

Paulo Coelho photo
Piet Mondrian photo

Related topics