Archive for February, 2011

Behavioral Economics: Social Preferences

This week’s topic deals with interesting findings in behavior dealing with trust, fairness, and reciprocity. I’ll be discussing three different economic experiments (all run independently from one another with different participants). In each of these experiments, two people are brought into a lab, and one is designated as the proposer and the other as the […]

Read the rest of this entry »

Pirate Economics

Earlier tonight I had the privilege to attend a lecture by Peter Leeson, where he discussed his book, The Invisible Hook: The Hidden Economics of Pirates. Most people think of pirates from the early 18th century as being barbaric, uninhibited people. Actually, pirates were rational profit-maximizers, just like many businessmen. To illustrate this point, I’m […]

Read the rest of this entry »

Behavioral Economics: Incentives

This week’s topic of incentives gave me trouble trying to figure out what to write, as incentives is such a broad topic that can be discussed in so many different ways. Incentives are the motivation of why a person acts a particular way. I eventually decided that I would focus in on the strange mystery […]

Read the rest of this entry »

Behavioral Economics: Money Illusion

A short topic this week, but an important one nonetheless. Money Illusion refers to the tendency of people to think of currency in nominal terms (its face value), rather than real terms (its purchasing power). Consider the following question presented to people: Suppose Adam, Ben, and Carl each received an inheritance of $200,000, and each […]

Read the rest of this entry »