Microeconomics: Tastes & Preferences
6.3 Brides for Seven Brothers (8/31/1999)
Sex-selective abortions in China, South Korea, and Taiwan have resulted in excess of male over female births.
Sex-selective abortions in China, South Korea, and Taiwan have resulted in excess of male over female births.
Bad Decision - TED lecture (2/28/2014)
Bad decisions are made because people are bad at figuring out the odds and values of possible events.
Bad decisions are made because people are bad at figuring out the odds and values of possible events.
Busy secretary - The principal-agent problem - youtube cartoon (11/2/2011)
The principal-agent conflict is endemic in employer-employee and supervisor-supervisee relationships.
The principal-agent conflict is endemic in employer-employee and supervisor-supervisee relationships.
Doing It Now or Later (8/20/1999)
People who believe that they will procrastinate when faced with immediate costs and prematurely appropriate immediate rewards may counteract this tendency sometimes to their own benefits.
People who believe that they will procrastinate when faced with immediate costs and prematurely appropriate immediate rewards may counteract this tendency sometimes to their own benefits.
Easy Money (12/21/2001)
If the insured takes less care to prevent loss, the insurer might be subject to unanticipated loss because of such moral hazard.
If the insured takes less care to prevent loss, the insurer might be subject to unanticipated loss because of such moral hazard.
Eat Your Cake Now - cartoon transcript (6/22/2012)
Who doesn't like to eat their cake and have it at the same time?
Who doesn't like to eat their cake and have it at the same time?
Eat Your Cake Now - youtube cartoon (11/2/2011)
Who doesn't like to eat their cake and have it at the same time?
Who doesn't like to eat their cake and have it at the same time?
Eggs for Sale (4/14/2000)
Selling of renewable human eggs to infertile women may be mutually beneficial, but are fraught with ethical overstone.
Selling of renewable human eggs to infertile women may be mutually beneficial, but are fraught with ethical overstone.
Flat-rate Pricing (6/22/2006)
Flat-rate pricing may increase the bottom line of businesses when consumers over-estimate the amount they might consume and under-estimate the cost of un-restrained use.
Flat-rate pricing may increase the bottom line of businesses when consumers over-estimate the amount they might consume and under-estimate the cost of un-restrained use.
Framing Perceptions (6/22/2006)
Since people are risk-averse with respect to gain and risk-seeking with respect to loss, their choices can be easily manipulated by whether an offer is framed as a gain or a loss.
Since people are risk-averse with respect to gain and risk-seeking with respect to loss, their choices can be easily manipulated by whether an offer is framed as a gain or a loss.
Happiness - Absolute or Relative? (6/4/2004)
If happiness depends on one's relative wealth, one will never be absolutely happy as long as there are others who are even richer.
If happiness depends on one's relative wealth, one will never be absolutely happy as long as there are others who are even richer.
Harvesting the Future (12/21/2001)
Injury victims might be prevented from selling their streams of future settlement payments for a lump sum for fear that they might not spend their quick cash wisely.
Injury victims might be prevented from selling their streams of future settlement payments for a lump sum for fear that they might not spend their quick cash wisely.
Health Risk is a Matter of Life and Death (6/22/2006)
Health insurance premiums tend to be high for individual policies because of adverse selection and moral hazard.
Health insurance premiums tend to be high for individual policies because of adverse selection and moral hazard.
If It Is Too Good To Be True! - youtube cartoon (10/8/2017)
The simple-minded addiction to the efficient market hypothesis can lead to super-rational behavior.
The simple-minded addiction to the efficient market hypothesis can lead to super-rational behavior.
Is Somebody Watching? - youtube cartoon (10/8/2017)
People behave better when they suspect others are watching.
People behave better when they suspect others are watching.
Life by default (1/16/2006)
Present bias and inertia lead to low enrollment in 401(k) retirement plans even though employer matching of employee contribution is quite generous.
Present bias and inertia lead to low enrollment in 401(k) retirement plans even though employer matching of employee contribution is quite generous.
Life Is Illogical - youtube cartoon (10/8/2017)
Intransitive choices are illogical but make life manageable.
Intransitive choices are illogical but make life manageable.
Looks Matter (11/5/1999)
Looks matter when most people are plain looking, even in jobs where looks do not affect job performance.
Looks matter when most people are plain looking, even in jobs where looks do not affect job performance.
Luck of the Draw (9/7/2005)
Luck may be just as important as fitness in determining who survives the market test.
Luck may be just as important as fitness in determining who survives the market test.
Not Now, Later! (8/19/2009)
Self-control overcomes the present-bias effect and can be enhanced through learning or external cues. -
Self-control overcomes the present-bias effect and can be enhanced through learning or external cues. -
Private Truths and Public Lies (10/6/2000)
Private preferences, long suppressed by public sanctions, may suddenly surface to overthrow the status quo when a precipitating spark reveals a critical mass of fellow dissenters.
Private preferences, long suppressed by public sanctions, may suddenly surface to overthrow the status quo when a precipitating spark reveals a critical mass of fellow dissenters.
Sharp Shooters - nudging in action cartoon (10/8/2017)
If you want your toilet floor clean, make urinal use into a target practice. A little nudging can go a long way.
If you want your toilet floor clean, make urinal use into a target practice. A little nudging can go a long way.
Statistical Victims (6/22/2006)
When identifiable victims are involved, people are willing to spend disproportionally more resources to save a few lives rather than spending the same amount to save a much larger number of statistical victims.
When identifiable victims are involved, people are willing to spend disproportionally more resources to save a few lives rather than spending the same amount to save a much larger number of statistical victims.
The Evolution of Defectors and Cooperators (8/13/1999)
There is selective advantage in being always honest even when it may be disadvantageous to do so at times.
There is selective advantage in being always honest even when it may be disadvantageous to do so at times.
The Origin of Predictable Behavior (11/5/1999)
Economic behavior is predictable largely because bounded rationality leads people to adopt rules of thumb which display greater regularity than does optimization.
Economic behavior is predictable largely because bounded rationality leads people to adopt rules of thumb which display greater regularity than does optimization.
Trust and Betrayal (5/9/2006)
Aversion to human betrayal may reduce potentially beneficial exchanges.
Aversion to human betrayal may reduce potentially beneficial exchanges.
