The only problem I have with Robin's definition (more "rational" means better believing what is true, given one's limited info and analysis resources. ) is that it doesn't make a point to distinguish between irrationality and other forms of stupidity.
I wouldn't call someone irrational if they dropped a sign in a calculation, or were simply not intelligent enough to understand how to calculate the answer, but if someone correctly calculates the the optimal trajectory, then takes a different route because "faith" tells him to, I would call that irrational.
My concept of rationality fits better to the idea of skillfully choosing which "Rituals Of Cognition" to trust. To put it another way, someone is rational to the extent that their preferred rituals of cognition "win" at the game of believing what is true (even if they manage to fail at implementing their "ROC"- that just makes them stupid/error prone).
The "given one's limited analysis resources" clause seems to cover some of this, but only vaguely, and would seem to give someone "rationality points" for coming up with a better algorithm that requires less clock cycles, while I would just give them "cleverness points". If one counts "non rationality intelligence" as a limited resource, then Robin's definition seems to agree, but "intelligence" is not very well defined either so defining "rationality" in terms of "intelligence" won't help us nail it down concretely.
Does anyone else have any thoughts on the difference between "irrational" and "other stupidity"?
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We're forgetting signaling. Robin would never forgive us, because he sees it in a lot of things, and I happen to agree with him that it's far more pervasive than people think.
In fact, the Tversky example gives people two opportunities to signal: not only do they get to demonstrate higher pain tolerance [especially important for men], they also get to "demonstrate" a healthier heart. Both should be boosts in status.
The same goes for Calvinists: though, when you think about it, you truly believe in the elect, you don't think about it most of your life [as we know, much of our day to day life is subconsciously guided] and are instead focused on signaling your elect status with a good life.
For good measure, it even works with the car: you buy a new car to signal wealth to signal health.
However, I do believe that we engage in lots of automatic self-deception [making it easier to deceive others into believing we have higher status]: thus, we may actually believe that an extra car/a good life/a higher pain tolerance would improve your life expectancy/grace/heart, but that's merely the proximate cause. Ultimately, we're driven by status-seeking.