Simler and Hanson argue that people are systematically unaware of their own motives, that this unawareness is not accidental but adaptive, and that most human institutions serve purposes different from their stated ones.
The evolutionary argument is that humans compete for status and allies while needing to appear cooperative, that self-deception makes deception of others more effective since a sincere person is more convincing, and that the brain therefore evolved to conceal certain motives from its own conscious processing. They compare the conscious mind to a press secretary who explains the organisation's actions without having been involved in the decisions.
The second half applies the framework to specific institutions. Body language and laughter signal alliances rather than communicate content. Conversation functions as a display of knowledge and social value rather than as information exchange, which they support with the observation that people prefer speaking to listening. Consumption signals wealth, taste and group membership rather than delivering use value. Art demonstrates the resources spent on producing it. Charity is directed at visible causes and at giving that others observe rather than at effectiveness. Education signals conformity, intelligence and persistence rather than transferring skills, which follows Bryan Caplan. Medicine functions substantially as a demonstration of care, which they support with the RAND health insurance experiment and the Oregon Medicaid study showing weak marginal health returns to additional consumption. Religion binds communities through costly commitment.
The framework is close to unfalsifiable, since any counterexample can be reinterpreted as concealed motive. Several empirical claims, particularly on medicine and education, are contested. The signalling analysis of institutions is genuinely useful for anyone designing incentives.
Operators and investors designing incentives who want a systematic signalling analysis of why institutions behave differently from their stated purposes.
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