More brain evidence of the uncertainty constant

I always watch the neurosciences, looking for some clue that tells me what the universal "herding" constant is for humans, that is the comfortable level of uncertainty about where the herd is headed.

Lauren Schenkman files a report on new advances for ABC News:

"Countless psychological experiments have shown that, on average, the longest sequence a normal person can recall on the fly contains about seven items."

She then goes on to describe a neuronal model for this devised by Mikhail Rabinovich, a neuroscientist at the BioCircuits Institute at the University of California.

The point for economic theory is that the eighth item in a list is barely remembered, the brain can track seven items reliably. This kind of research leads us toward the master uncertainty constant of human economies. We are comfortable when our error rate reaches .125, our first guess at the universal uncertainty constant. This tells Quantum Economists a lot about the structure of the economy in terms of distribution networks. More later.