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A blog about cognitive and behavioural economics. Building mathematical models of how psychology influences economic systems.
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A blog about cognitive and behavioural economics. Building mathematical models of how psychology influences economic systems.
Behavioural economics is not economics (yet)
Sat, 20 Aug 2011 05:16:41 GMT
Economics is useful not when it makes broad, one-sided assertions (markets are good; externalities are bad) but when it uses a model to give a firm, quantitative answer to a specific question. What difference will it make to the price in the milk market if one new supplier enters, producing 3 million litres a year? If I buy this piece of land and build a gas station, will I make a profit? What's the optimal price for me to sell my consulting services if I value my free time at...
