Category Archives: Behavioral Economics
Beyond the Biological Imperative
Do children make us happy? Is reproduction rational? Questions like these usually evoke knee-jerk reactions and the default answer from someone who has children is: “Of course, children make us happy!” However, various academic studies and research have shown – … Continue reading
Filed under Behavioral Economics, Books
The Trolley Problem
Consider the following two scenarios: Version 1 – A trolley is hurtling out of control along a track, bearing down on five people who have been tied to the track by a mad philosopher. You can avert the disaster by … Continue reading
Filed under Behavioral Economics, Philosophy
The Century of the Self
Here’s an intriguing documentary ‘The Century of the Self’ made by Adam Curtis in 2002 (video link below). It explores and examines how politicians and PR professionals have been transforming people from citizens into consumers, how people are persuaded to … Continue reading
Filed under Behavioral Economics
Cultural Pessimism
Cultural pessimism has existed as long as culture itself. Just few weeks ago, I met with some friends over a party who bemoaned how new technologies, like GPS for instance, have made us less “intelligent” as compared to the prior … Continue reading
Filed under Behavioral Economics, Philosophy
Impatient Intelligence
Jack is looking at Anne, but Anne is looking at George. Jack is married, but George is not. Is a married person looking at an unmarried person? (a) Yes (b) No (c) Can not be determined *** If you chose … Continue reading
Filed under Behavioral Economics, Puzzles
Cognitive Illusions
Take a look at the picture below. Do you see spirals of green and blue colors embedded in pink and orange stripes? Would you believe me if I said that the green and blue are actually the same colors? Yes, … Continue reading
Filed under Behavioral Economics
Racial Segregation
In a very brief video, Tim Harford, an economist and author of two very interesting books: The Logic of Life and The Undercover Economist, cleverly explains how a mild preference (of not wanting to get outnumbered) of individuals in a … Continue reading
Filed under Behavioral Economics
Congnitive Biases and Nudge
We all have inherent biases that offset our judgements and deviates us from making right decisions in many situations. For example, the universal status quo bias (inertia) makes us stick to the default and resist changes. (How many of us have selected the auto … Continue reading
Filed under Behavioral Economics, Books
Is Divorce Underrated?
I’ve been immensely enjoying reading The Logic of Life written by economist Tim Harford, whose earlier book, The Undercover Economist, was quite a good read as well. There’s a chapter about the economics of marriage that particularly drew my attention. … Continue reading
Filed under Behavioral Economics, Books
The Myth of Rational Voter
In a thought provoking book, The Myth of Rational Voter, economist Bryan Caplan argues that democracies fail because voters are irrational, possessing systematically biased beliefs about economics. (It’s important to note though that the argument he makes is not against democracy, … Continue reading
Filed under Behavioral Economics, Books
