behavioral economics, complexity, agent-based models, computational and experimental economics
Why what you’ve been told about government debt is wrong, why governments do not actually need to tax before they spend and why deficit spending does not need to be financed via public debt issuance. As our understanding of the mechanics of public finance has …
In this fourth installment of our Behavioral Econs 101 series(for parts 1, 2 and 3, see here, here and here) we continue our discussion of the endowment effect. In Part 3, we explained how Prospect Theory helps us understand why losses feel so much more …
In this third installment of our Behavioral Econs 101 series(for parts 1 and 2, see here, and here) we finally turn to a discussion of the endowment effect. Why do losses feel so much more painful than an equivalent gain feels good? Why are we …
Artificial intelligence and machine learning might be all the rage today, but depending on who (and where) you ask, you’ll likely receive quite different answers to the question, “how do you feel about AI and automation?” Your respondent will either pontificate about the hopes for …
As part of our second installment in our Behavioral Econs 101 series(see part 1 here), we turn now to tie up some loose ends with mental accounting by discussing how behavioral economics helps us understand when we think of a deal as a bargain or …
Richard Thaler, the 2017 Nobel Laureate for Economics, has spent a career trying to understand individuals as they really are, idiosyncrasies, irrationalities and all and in the process founded the field of behavioral economics. In this series of short essays, we will introduce the basic …
Following on from Part I of this series on Brexit from a behavioural economics perspective(where we discussed the role of attribute substitution in framing the Brexit question), we now shift our focus to the most important person in this entire episode, David Cameron, the former …
This is the first article in a series that examines how the Brexit referendum outcome can be understood through the lens of behavioural economics. We begin by first examining how limitations introduced by traditional economic thinking’s reliance on the foundation of rational choice theory as …