Economists Do It With Models

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Entries Tagged as 'Incentives'

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What My Students Have Been Learning, Loss Aversion And Incentives Edition, Now With More Simpsons…

September 18th, 2013 · 6 Comments
Behavioral Econ · Incentives · The Simpsons

As I’ve mentioned before, I am teaching behavioral economics this semester. So far, I’ve introduced the concept of prospect theory and loss aversion- specifically, how people how people are made more unhappy by a loss than they are made happy by what they see as an equivalent gain- and we discussed how loss aversion can [...]

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Tags: Behavioral Econ · Incentives · The Simpsons

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The Tragedy Of The Common Tip Pool…

September 15th, 2013 · 8 Comments
Behavioral Econ · Econ 101 · Incentives

If you’ve been reading here for a while, you’ve probably caught on to the fact that I’m really into incentives. If you know me in real life, you’ve probably caught onto the fact that I hate tipping. No, not like that- I’m not a crappy tipper, I just really dislike the whole tipping system, mostly [...]

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Tags: Behavioral Econ · Econ 101 · Incentives

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Fun With Contracts And Organizations, Clive Davis Edition…

June 17th, 2013 · 3 Comments
Books · Contracts · Incentives · Music Biz

Well kids, it’s that time of year where I am working to finish a book draft when I should be on the beach somewhere. What this means for you is that you get to be the guinea pigs for my musings on the music industry to some degree. (The book is about the economics of [...]

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Tags: Books · Contracts · Incentives · Music Biz

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Economic Principle #4: People Respond To Incentives, Taliban Edition…

April 17th, 2012 · 1 Comment
From The Vault · Incentives

Headline of the week: “Taliban commander turns self in… for reward on ‘Wanted’ poster” Mohammad Ashan, a mid-level Taliban commander in Paktika province, strolled toward a police checkpoint in the district of Sar Howza with a wanted poster bearing his own face. He demanded the finder’s fee referenced on the poster: $100. I can’t help [...]

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Tags: From The Vault · Incentives

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Economists: Nature Or Nurture?

December 28th, 2011 · 6 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

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The Dumbest Words I’ve Read Today, Now With Jon Stewart, Black Swans and Dan Ariely…

May 20th, 2011 · 7 Comments
Behavioral Econ · Decision Making · Incentives

I want to like you, Ben Stein- you knew enough economics to not need a script for your role in Ferris Bueller’s Day Off, and I definitely wanted to win your money- but I’m guessing that your father Herb, who was an actual economist, would not have been pleased with your line of reasoning regarding [...]

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Tags: Behavioral Econ · Decision Making · Incentives