The Root of the Problem

Here’s why behavioral economics is slow to take off:

More and more, I am thinking about this area in terms of the normative vision of the world it presupposes. Most amazingly, behavioral economists tend to accept the normative stance of neoclassical or standard economics (that is, the axioms of rationality). They “simply” do not . . . → Read More: The Root of the Problem

Can behavioural economics help markets to work better?

In his book, ‘The Upside of Irrationality’, Dan Ariely claims to have identified a market failure in the online introductions market. He refers to a survey indicating that people participating in that market spent on average 5.2 hours per week searching profiles and 6.7 hours per week emailing potential partners for a payoff . . . → Read More: Can Behavioral Economics Help Markets to Work Better?

Secrets of the Moneylab

Kay-Yut Chen and Marina Krakovsky have earned their colours as behavioural economists at Hewlett Packard in the HP Labs and in in their new book Secrets of the Moneylab they present the gist of their research over the past 20 years. The book is a run-through of the most salient aspects of behavioural . . . → Read More: Secrets of the Moneylab

Behavioral Law & Economics

When the concept of law and economics came into existence, behavioral economics was a central point of contact. The Coase theorem is the foundation of law and economics. According to the theorem, the outcome is not affected by allocation of legal rights to one party or another if transaction costs are sufficiently low because . . . → Read More: Behavioral Law & Economics