blink comments on Epistemic vs. Instrumental Rationality: Case of the Leaky Agent - Less Wrong

14 Post author: Wei_Dai 07 May 2009 11:09PM

You are viewing a comment permalink. View the original post to see all comments and the full post content.

Comments (19)

You are viewing a single comment's thread.

Comment author: blink 09 May 2009 08:13:16PM 0 points [-]

In nearly all situations, I suspect, lying to yourself only appears profitable because the situations has been misinterpreted. It would help to have more contextual examples where lying is plausibly profitable.

The realtor example is too ambiguous. At best, lying gives me a greater probability of capturing more of the surplus from trade, but at the risk of no sale at all (e.g. the best offer falls between my real and stated minimum). Moreover, the scenario construes sale as buyer vs. seller, but my best hope to get a high price is with competition among buyers rather than negotiating in a zero-sum game with one buyer. Here, a truthful realtor might help, because buyers would believe him when he says someone else has made a better offer.