Behavioral economics dating
Rosalsky also draws on the economic wisdom of Katherine Milkman, Mancur Olson, and Gordon Tullock.
I am most curious to hear what you think of Greg Rosalsky’s journey of self-discovery — and whether it made you more, or perhaps less, likely to embrace the bedrock truisms of economics.
Their book is far richer and more nuanced than I can capture in this short summary. Social norms, women’s changing roles, and sexual liberation have to be factored into the equation.
Still, I suspect they would agree that a purely economic theory falls short as an explanation of the dramatic transformation of family life in the U. Research from the new field of behavioral economics (a special focus of my new book) has taught us that people often do things that are not in their own best interest, much less that of their children.
give up junk food), which may be coupled the fear of loss—a cash penalty in the case of non-compliance.
We then illustrate how these concepts can be applied in two settings: finance and savings.
Financial markets have greater arbitrage opportunities than other markets, so behavioral factors might be thought to be less important here, but we show that even here the limits of arbitrage create anomalies that the psychology of decision making helps explain.
We begin with a preliminary question about relevance.
Does some combination of market forces, learning and evolution render these human qualities irrelevant? Because of limits of arbitrage less than perfect agents survive and influence market outcomes.