we, the people, who make mistakes–economists included

Andrew Gelman discusses a “puzzle that’s been bugging [him] for a while“: Pop economists (or, at least, pop micro-economists) are often making one of two arguments: 1. People are rational and respond to incentives. Behavior that looks irrational is actually completely rational once you think like an economist. 2. People are irrational and they need … Continue reading we, the people, who make mistakes–economists included

elsewhere on the net

I’ve been swamped with work lately, so blogging has taken a backseat. I keep a text file on my desktop of interesting things I’d like to blog about; normally, about three-quarters of the links I paste into it go unblogged, but in the last couple of weeks it’s more like 98%. So here are some … Continue reading elsewhere on the net

Kahneman on happiness

The latest TED talk is an instant favorite of mine. Daniel Kahneman talks about the striking differences in the way we experience versus remember events: It’s an entertaining and profoundly insightful 20-minute talk, and worth watching even if you think you’ve heard these ideas before. The fundamental problem Kahneman discusses is that we all experience … Continue reading Kahneman on happiness