2 results for tag: Behavioral Economics


Economics: Spock vs. Homer Simpson

Classical economics is built on the assumption that people make rational decisions based on the desire to increase their economic well-being. In some groups where I participate, we are reminded of an ongoing conflict between our internal Mr. Spock and our Homer Simpson. Spock is logical, rational, and predictably boring. If we were all Mr. Spock there would be no need for traffic cameras because everybody would be on their best behavior and follow the traffic rules. There would be no need for welfare and government aid as we would each be responsible for each other and ourselves. If we all were Mr. Spock we would all drive Yugoslavian Yugos. ...

Economics: Four Ways to Spend Money

Economics has always intrigued me. I remember a professor spending days lecturing about money supply, interest rates, demand, inflation, and other metrics; only to have me question her artistic theories with my observation of market realities. I appreciate the decisions people make relative to their own personal wealth and spending habits. Economics has never been about carrots and potatoes, this oversimplifies the question of how people make decisions. All economic partners including governments, business, and consumers should actively study the actual choices people make as a reality check to their constructed theories and beliefs. I believe ...