Economists Do It With Models

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Entries Tagged as 'Decision Making'

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An Implicit Tax Hike On Irrationality, Lottery Edition…

December 13th, 2013 · 12 Comments
Behavioral Econ · Decision Making · Fun With Math

Lots of people like saying that playing the lottery is a bad bet- and it is, mathematically speaking. If you ever need to convince someone of this, allow me to suggest the following argument: Let’s say you had the option to put a dollar into a collection along with 9 other people. One of the [...]

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Tags: Behavioral Econ · Decision Making · Fun With Math

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So *This* Is What Happens When People Actually Listen To Economists, Football Edition…

November 15th, 2013 · 4 Comments
Decision Making · Sports

This is a conversation that I had yesterday with a friend: Friend: documentary on ESPN right now that’s all you Me: I only see SportsCenter…what am I missing? Friend: ESPN 2 sorry high school coach agh you just missed it Me: Friend: found it all you Me: um, I was writing about that 5 [...]

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Tags: Decision Making · Sports

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How Behavioral Economists Put The “Trick” In “Trick Or Treat”…

November 6th, 2013 · 4 Comments
Behavioral Econ · Decision Making

This Halloween, I did what any sane economist would do on this fine day- I drove to New Haven to experiment on trick-or-treaters with Dean Karlan. When I explained this to my students, I mentioned that back when I was little parents were super afraid of people putting razor blades and other unsafe objects into [...]

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Tags: Behavioral Econ · Decision Making

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So What You’re Saying Is That Crack Smokers Are Better Decision Makers Than I Am…

September 23rd, 2013 · No Comments
Decision Making · Policy

Every year, I teach a course in behavioral economics and am therefore reminded of how many biases I exhibit in my decision making. (In case you’re curious, being aware that an irrationality or bias exists can make the bias go away in some cases but not in others, which implies that I am pretty far [...]

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Tags: Decision Making · Policy

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The Real Reason Economics Is The Dismal Science…

January 25th, 2013 · 19 Comments
Decision Making · Econ 101 · Happiness

Just kidding- this is the real reason that economics is called the dismal science, but just go with me here. Economists are quick to point out that the true cost of something, whether it be a physical good, an activity, etc., is what one has to give up in order to get that thing. This [...]

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Tags: Decision Making · Econ 101 · Happiness

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Economists: Nature Or Nurture?

December 28th, 2011 · 8 Comments
Behavioral Econ · Decision Making · Incentives

It’s not like I can’t relate, but I would have thought that this kid would have a bright future in finance rather than economics…the only question is whether she should be a trader or work for a hedge fund, since she has clearly figured out the concept of arbitrage: I feel like there should be [...]

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Tags: Behavioral Econ · Decision Making · Incentives