Humans make choices they believe will provide the greatest satisfaction according to their subjective values with the information they have on hand. These values are not only unique to each individual, they are unique to the circumstances under which a good or service is experienced.
By: Alex Kanode and Kevin D. Gomez scene/ “He’s been complaining about not having any money and then he goes and buys a brand new Nissan truck,” my friend asks. “He's acting irrationally!” The economist responds, “Well, his stated preferences are obviously different from his revealed preferences. His budget constraint must be higher than we … Continue reading Sh*t Economists Say Part 1
Seeing as we can find the economics in everything, the message given by Solomon (the Teacher) is laden with a few foundational principles of economics. From the book of Ecclesiastes: 7 All streams flow into the sea, yet the sea is never full. To the place the streams come from, there they return … Continue reading Nothing New Under the Sun
You know what really gets an economist excited? Models. Not these kind. Well, I'm sure some economists like these models. Ah, that's better. Models are a tool to easily reference and generalize the world around us. However, this may come as a surprise to some of you, so sit down. Our world is messier … Continue reading Richard Thaler: What the Nudge?
T.G.I.F. takes on a different connotation when talking about Black Friday. Are the deals really worth all the hustle and bustle? This (very American) holiday that exploits our (consumerist) way of life is showing signs of hope. It’s no surprise that Black Friday has been and is still known to be the top shopping day … Continue reading Hustlin’ and Bustlin’ of Black Friday