economics

relativity

Relativity in Behavioral Economics

Relativity is not just for physics. Nicolae Naumof posts a very good introduction to the foundational concept of relativity in behavioral economics. Through two examples he describes how we use mental references, environmental factors, and comparisons to make what are sometimes less than purely rational decisions. From Naumof: “The pond effect shows us that people …

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The New Economics: Meso and Meta

From the article by Andrew Sheng and Xiao Geng: “Indeed, today’s mainstream micro- and macroeconomic models are insufficient for exploring the dynamic and complex interactions among humans, institutions, and nature in our real economy. They fail to answer what Paul Samuelson identified as the key questions for economics – what, how, and for whom are …

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Why Self-Interest In Markets Can Benefit Everyone

What Penguins Know About Business: The Value of Sharing in Markets From Paul J. Zak at Claremont Graduate University: “There’s nothing new about being shameless, or ruthless and cynical, when it comes to making a buck. Plenty of people in business seem to think that fakery and exploitation is the name of the game. Which …

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