Reflexivity_ What is.

However, biases and distortion produce a false reality, the repulsion in between actual reality and false reality will take place somewhere in the future for the gap has widen so much that facts are already far behind the supposed-equilibrium, needless to mention the supposed actual course of outcome. This will imminently bring to a correction that is so much needed for the placement of actual reality into the outcome that it is supposed to be, albeit already late.

Explaining equilibrium, it is that theorists generally assume people have perfect knowledge, perfect timing as well as perfect decision making and perfect rationality. This ultimately is not, to be precise, even possible or exist in the world of ours that on the appearance appear to be relatively easy but utmost complex in terms of specification. This proves it renders theories that require ceteris paribus, or equilibrium or perfect assumption invalid in the sense of practicability in the real world. Such easily falsifiable theory holds but untruthful rationale of human thinking.

The result:

The result created by each and every individual could be different or same each depending on their perceptions and degree of biases & distortions held in relation to knowledge & facts available to them. It must be known that people generally cannot know what others are thinking about in full. Also, the underlying types and degree of biases & distortions they have in decision making process cannot be known in full too.

The lack of existence of mutual understanding in between people’s notion creates differences in each and every decision individual makes, for the decision is perceived to have sustained one’s competitive advantage the others do not see or do not see. The competitive advantage one reckons he has is also not equivalent to the competitive advantage the others have.

Explaining this, it is also important for people to know that the degree of competitive advantage is also largely different. For example, the competitive advantage of A is 1 whilst the competitive advantage of B is 1+2. A does not know B’s competitive advantage and B does not know A’s competitive advantage. A reckons his competitive advantages is the best for he himself whilst B reckons his competitive advantage is best for himself. But it could be that A actually has lower competitive advantage compared to B and vice versa depending on situations and factors taken into consideration. But of all, the general understanding is that individual does not know the type and degree of competitive advantage of each other.

Does the difference in decision making then, helps to create a wider gap in between underlying reality compared to distorted facts? This is a question worth pondering at. The abstract answer for this lies unknown when facing different situations. In some situations, I believe the gap can be reduced. And in some other situations, the gap can be widened. The notion to this result is that the distortion may favors the underlying actually reality or repels it further from reality. This is due to that the complexity of little components that people included when creating a perception of their own is inexplicable.

Coming to this, it is important to adhere the significance of certain criteria when making a decision, that is, the usual facts that people perceive as the main driver of any possible prevailing event. The significance of the main drivers will help to widen or reduce the gap in between outcome and underlying reality, which can be taken as a probability of prevalence. This main driver is sort of like a ground rule to make any further progress to decision making.

The thinking involves too much of complexity that one is not even aware of, but for every notion one has, it certainly has generated certain justifiable reasons for people to adopt it be it correct or incorrect in the knowledge of others. It is at least, correct in the eye of beholder. Understanding this can aid people in realizing the biases they might have and also the distortions they might have in brain with intermediate probability depending on one’s level of revelation.

How then, one realizes about the actual course of underlying reality? This proves to be very vague, because the perception of everyone, I believe, underlies a certain degree of truth and reality. And there certainly has no way to measure or justify it by full definition. The truth is then, I shall say, always skewed and hence there never was equilibrium.

Probably also, there could be nothing hold as truth, or the truth only holds a second long, for the subject of a matter and its factors changes every split second in the modern world. However, I sincerely believe a degree of truthfulness of any circumstance do exist, by also incorporating the notion of opportunity cost.

To sum up in this chapter, I would say that perfect understanding or interpretation of information do not exist, the existence is only the degree to which it is skewed from the truth, for the rationality of every single individual is flawed and limited. This makes biases and distortions imminent.  

Reflexivity_ Cont'