This was kinda just blurted onto the page, so forgive any weird grammar stuff. It has not been peer-reviewed. :)
On the school openings front, some folks are coming out in opposition to the schools reopening in the fall, or are sharing some earnest concerns.
I think they are right to be concerned. There seems to be some sort of perceived divide between folks who are super relaxed about the pandemic and folks who are terrified. Both can be understood. Much of the arguments on both sides of the divide are hard to falsify, given the uncertainty that emerges when…
#triggerwarning
Behavioral economics has received a new wind of hype with Richard Thaler winning the Nobel Prize in economics in 2017. The big idea is his (and Cass Sunstein’s) coining of the term “choice architecture.” Moreover, they also coined the term “libertarian paternalism” as a way of employing the big idea. Despite the justifications in their best-selling Nudge, libertarian paternalism is what you are thinking — a contradiction.
In any case, choice architecture is a worthy concept. What it means is that our choices are not as black and white as traditional economics will tell you. …
The occurrence of another mass shooting brings back all the old arguments from both sides of the main ideological spectrum. However, consensus can be achieved when the common trend — mental illness among mass shooters — is pointed out.
Unfortunately, this consensus does not keep the arguments from reaching a stalemate.
By restricting the purchase of guns altogether, the mentally ill will have a harder time of getting their hands on guns. But, this strategy restricts all the folks that are not mentally ill from pursuing their livelihoods and hobbies. If the government only tries to restrict the purchase of…
Oh, Bitcoin. It has people more divided than our commander-in-chief. On one side, we have the aspiring (or closet) millionaires — the Bitcoin enthusiasts — preaching the good word of cryptocurrencies. And on the other side of the aisle, we have the finance millionaires — or the financial establishment — waiting somewhat patiently for Bitcoin’s inevitable expiry.
In any case, the predicted demise is not keeping people from making incredible amounts of money on the rapid changes in price, or volatility. Volatility is the main concern for not only financial investors, but for everyone. It affects how risky we perceive…
A gambler walks into MGM Grand, pockets swollen with $10,000. He converts his cash to chips and finds a seat. After playing poker for an hour, he understands the play style of his opponents. Feeling comfortable, he examines his middling five-card hand, considers the odds, and folds. As the day drags on, the same dealer deals our gambler the same five cards with the same odds against the same people at the same table. Does he fold? Kahneman’s insight is…it depends.
While economic models based on rational agents, or people, assume that “decision makers evaluate outcomes…
So… we admit Alex gave you the ol’ bait ‘n switch with his post on Harry Markowitz, who basically came up with the sound advice that we shouldn’t put all our eggs in one basket. He teased saying that this was the “key to making cheddar.” You thought he was going to teach you how to make money.
I will not tease you. I will now share the best cheddar-makin’ advice I’ve ever been privy to — stock options or options trading.
I will not pretend to teach you how to buy and sell options in the stock market. For…
It’s that time of the year again! Sure, the leaves start falling and we bring out the winter clothes, but what we really care about is the annual Nobel Prize award. Winning the Nobel Prize is like leveling up to Chuck Norris status; only the best in the field win. Very few achieve this status and as seen from our weekly Bygone Econ Icon, the contributions from the winners of the prize in economics are huge. …
Don’t you hate it when you hit rush hour traffic? How about when you end up going to lunch at your favorite chicken spot and the line is out the door? Me too.
I’m never surprised by the rush hour or the long lines. Sometimes, I get frustrated with myself before I get caught in these situations simply because I’m expecting them. I look at the clock and I’m upset that I didn’t wake up earlier or eat a heartier breakfast so I could wait another hour before eating lunch.
Can you relate? Maybe the mere thought of sitting in…
Why do seemingly “normal” or “rational” people break the law and become criminals? Is there an explanation for why people commit seemingly stupid crimes?
“An armed Omaha teen carjacker out on bond is back behind bars because he stole a woman’s car early Thursday but was stumped by the stick shift. Mganga Mganga, 17, ran up to Melissa Peters as the woman prepared to drive her 13-year-old son to school around 7 a.m.
“He didn’t say anything,” the 48-year-old mom told the Omaha World-Herald.
“‘Oh, my God, he’s got a gun!’” she blurted out as the teen jumped in her…
Almost all the choices we make in life — like trying a new restaurant, deciding to go to school, or moving across the country for a new job — are made with some level of uncertainty. We might get food poisoning, take on a bunch of student loan debt and end up hating school, or find out you hate the new job and don’t like living in a place where you don’t know anybody, respectively.
How do we end up making these decisions that have the possibility of such horrible outcomes?
We, subconsciously, measure the likelihood, or probability of failure…
Kevin D. Gomez
economics and other things, but mostly economics. www.reasonableconomics.com has similar things.
