Predictably Irrational

Among the umpteen interesting points this book introduces, there are two of them which I want to put the emphasis on:

1- Visual vs. Cognitive mistakes

Vision is by far the best and the most frequent thing we do. The part of our brains dedicated to vision is bigger than any other part dedicated to anything else. And if we repeatedly make mistakes in vision, what’s the chance that we don’t make even more mistakes in something we’re not as good at, like financial decision making for instance? And the funny thing is that while in vision you can demonstrate mistakes very easily, in cognitive decisions it is really hard to persuade people they’re wrong.

2- Standard Economics vs. Behavioral Economics

In a survey about organ donation the asked question was:
A) Check the box below if you want to participate in organ donor program
In this case rate of participation was very low --> People didn’t check and didn’t join

In a second survey they changed the question a bit:
B) Check the box below if you don’t want to participate in organ donor program
And in this case rate of participation was very high --> People didn’t check but in this case they joined.

Now Standard Economic Theory explains that the cost of lifting the pencil and checking is higher than the possible benefit of the decision that’s why people don’t check.
Whereas Behavioral Economic theory says that in such cases people are left in dilemma and don’t know what to do. And because of that they just pick whatever was already chosen for them.

Which one of them is right?
I don’t know. If anybody does please tell me!

Irrationally Yours
S.K.