http://weakonomics.com/2010/06/25/thinking-like-an-economist/ Everything That's Wrong With You And Your Money Wed, 23 May 2012 01:09:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://weakonomics.com/2010/06/25/thinking-like-an-economist/comment-page-1/#comment-4297 the weakonomist Sat, 26 Jun 2010 13:24:03 +0000 http://weakonomics.com/?p=4491#comment-4297 Dude, Rob, great comment man. Dude, Rob, great comment man.

]]> http://weakonomics.com/2010/06/25/thinking-like-an-economist/comment-page-1/#comment-4296 Weekend links: June 26 2010 Sat, 26 Jun 2010 11:55:20 +0000 http://weakonomics.com/?p=4491#comment-4296 [...] Thinking like an Economist @ Weakonomics [...] [...] Thinking like an Economist @ Weakonomics [...]

]]> http://weakonomics.com/2010/06/25/thinking-like-an-economist/comment-page-1/#comment-4294 drcrosson Sat, 26 Jun 2010 01:04:42 +0000 http://weakonomics.com/?p=4491#comment-4294 It's not just that we can behave in ways that are irrational...the social and prisoners dilemma literature has done a good job of exploring the consequences if everyone acts as a self-interested utility maximizer. Many opportunities for gains in wealth can be lost. It’s not just that we can behave in ways that are irrational…the social and prisoners dilemma literature has done a good job of exploring the consequences if everyone acts as a self-interested utility maximizer. Many opportunities for gains in wealth can be lost.

]]> http://weakonomics.com/2010/06/25/thinking-like-an-economist/comment-page-1/#comment-4293 Reb Fri, 25 Jun 2010 22:58:40 +0000 http://weakonomics.com/?p=4491#comment-4293 Was stuffing your face with 2 PB&J’s really an irrational decision? If the bellyache was concurrent with the enjoyment of the sandwiches, I would say maybe, but I bet there was a delay. Therefore, the benefit (yumminess) isn’t comparable with the bellyache, as is. You just applied a high enough discount rate to the bellyache that the benefits outweighed the costs in comparable terms. I think that’s why Americans are so bad at delayed gratification in general – we have very steep discount rates. Was stuffing your face with 2 PB&J’s really an irrational decision? If the bellyache was concurrent with the enjoyment of the sandwiches, I would say maybe, but I bet there was a delay. Therefore, the benefit (yumminess) isn’t comparable with the bellyache, as is. You just applied a high enough discount rate to the bellyache that the benefits outweighed the costs in comparable terms. I think that’s why Americans are so bad at delayed gratification in general – we have very steep discount rates.

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