behavioural economics

National | World | Economic History | Pop Eco | Interactive Articles

Should you read this?

Good choice! What caused you to click through though? Was it a conscious decision? Also, if you think it was an intentionally conceived action, how do you actually know?

While you may not have spent several minutes comprehensively analysing the costs and benefits of reading this article in order to make an entirely rational choice, there was, if only subliminally, some form of decision-making process behind your decision.

Read more

What Economics Can Teach Us About Batman

In The Batman Handbook, Scott Beatty sagely advises that to be as good a crime fighter as the world’s greatest detective, you need to ‘Learn everything you can in every discipline, no matter how obscure’. His list of essential subjects, however, does not include economics. This is a tragic oversight, not just because I’m saddened to hear that Batman might not have learned economic theory, but because economics suggests that Batman himself is not the solution to Gotham’s crime problem. Why? Three reasons.

Read more

Changing Perspectives on Consumer Psychology (Not Examinable)

Rational consumer decision-making is often characterised by phrases such as opportunity cost, willingness to pay and cost-benefit principle, words that you should be sick of (or will be soon) as you gear into hyperventilating-exam-hermit mode. Marketing and psychology papers in the past have posited explanations for consumer behaviour based on rational, conscious and effort-ful information processing, yet just how much of consumer behaviour can really be accounted for within the domain of conscious thinking? More and more research continues to reveal the significance of unconscious dynamics underpinning consumer choices.

Read more

Past-me, Me, Future-me

The term time inconsistency is used to describe a situation where one’s ‘optimal’ decision depends on ‘when’ he/she makes the decision and the preferred decision at each point in time is different to what you thought you would prefer in the past.  In other words, there is (was or will be?) disagreement between the past-me, me, and future me.

Read more