This week we’ll be discussing hyperbolic discounting. This is the human tendency to prefer smaller payoffs now over larger payoffs later. This is essentially caused because humans’ perception of time is not linear; people tend to think of time in…
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…
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 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…
One of the most well-known economic theory papers is Prospect Theory, written by Kahneman and Tversky. Prospect Theory discusses how people violate Expected Utility Theory by valuing gains and losses differently from one another Before we get into Prospect Theory…
