Today's post, Zut Allais! was originally published on 20 January 2008. A summary (taken from the LW wiki):
Offered choices between gambles, people make decision-theoretically inconsistent decisions.
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Perhaps all variation in certainty favouring is simply due to environmental factors. Remember that all complex adaptions must be universal so there must be a simple difference, something like single gene present or absent, which controls how much someone desires certainty for any of the variance to be genetic.
Even if some is genetic, I would guess that the primary difference is in which side of the system1 vs system 2 dichotomy is more likely to win. This affects lots of things other than certainty bias, and so may have been kept where it is by many other factors, with the last being an unfortunate side effect of the general way in which system 1 works (in particular, that system 1 seems bad at expressing nuances and continuous ranges, it sees the world almost entirely in good vs bad dichotomies).
Certainly there are no true expected utility maximisers out there, so it is no surprise that we should violate expected utility maximisation in some way.
Even having said that, if you demand an explanation the one I just gave still seems reasonably good.
Could very well be.
Yes, it does. I prefer the one paulfchristiano made, since it applies to a wider range of circumstances (interpersonal and environmental), but the untrustworthy agent explanation works well enough.