Behavioral Economics
Status Credit Cards
Monday, March 22nd, 2010In high school, credit cards were alluring. They were a symbol of freedom and adulthood. I couldn’t register a domain name or rent a hotel room without one. So, I convinced my parents to cosign the papers I needed to get a debit/credit card at my local credit union. The credit part of the card […]
Paradox of Choice
Sunday, November 22nd, 2009A friend of mine, an aspiring ecologist with a blog of his own, sent me a link to Barry Schwartz’s 2005 TED talk on the paradox of choice. Schwartz, a psychologist, has written a book with the same title that I have not read. The video is entertaining and thought-provoking. Schwartz argues that too much […]
Ethics of the Truth
Tuesday, November 17th, 2009A video circulating around the internet is disturbing. An aspiring NFL cheerleader had a negative reaction to a season flu shot. It activated dystonia disorder. If you haven’t seen the video you should look it up on YouTube. Note: Video previously embedded was removed from YouTube. YouTube comments express skepticism, compassion, but most of all […]
It’s Not Always a Mask
Thursday, March 26th, 2009When Facebook came out, I was intrigued by how people presented themselves. Initially, membership was confined to university students. When crafting a profile, students knew their audience well. Pictures from last night’s party were okay. Divulging your secret love of Hanson was not. In the real world, people act differently around different groups of friends. […]
Libertarian Paternalism
Sunday, January 25th, 2009I just finished Nudge, by Richard Thaler and Cass Sunstein. These University of Chicago professors advocate “libertarian paternalism” which recognizes that people often act irrationally and recommends that governments “nudge” people to make better choices. In their own words: Libertarian paternalism is a weak, soft, and non-intrusive type of paternalism because choices are not blocked […]
How to Make an Economist Mad
Sunday, January 18th, 2009Say that economics isn’t a real science. Someone told me that over Christmas, and I have to admit that it rubbed me the wrong way. I don’t want to delve into what “science” really entails. I’d be the first to concede that economists don’t study the physical world. What bothers me is the all too […]
Selection Bias at the Carnival
Monday, April 21st, 2008This last weekend my university campus was open to prospective students and their families. Following the spring football game, the university hosted a small carnival with amusement rides and traditional carnival games. I went with a couple friends who satisfied their inner thrill-seeker with a ride on the ferris wheel. However, I was able to […]
Skin in the Game
Wednesday, April 2nd, 2008While grocery shopping with a friend of mine, she mentioned that she always buys the slightly more expensive eggs. The higher price signals that the eggs are of higher quality. If the pricey eggs are still on the market, someone must be buying them for a reason. In unfamiliar markets consumers often use price to […]
Combating Bias with Bias
Thursday, March 6th, 2008I’m reading Colin Camerer’s overview of Behavioral Economics. My mom doesn’t have an email address, so the following passage made me laugh: Microsoft had a hard time getting its programmers to take customer complaints seriously (despite statistical evidence from customer help-lines), because the programmers thought the software was easy to use and couldn’t believe that […]