Undercover Economist: Calculators away … life’s big choices call for gut instinct

Life presents us with some very large decisions: where to live, whom to marry, whether to have children. Is there any reason to believe that we make these choices wisely?

Don’t come to an economist for the answers. When it comes to choice, classical economics leaps to the punch line and works backwards: if both Betty Sue and Sally Ann are willing to marry you and you chose Betty Sue, the economist can only conclude that you preferred Betty Sue. Whether the marriage made you happy, or you were right to choose her, is none of the economist’s business. Game theory, for instance, may tell you how to get what you choose, but not how to choose.

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