rational behavior

2 Stories

Economists Just Don't Get People

Most models are based on crazy assumptions, Mark Buchanan argues

(Newser) - The next time you hear an economist make a bold pronouncement, you should probably be a bit skeptical, because the entire field "is desperately in need of a paradigm shift," argues Mark Buchanan at Bloomberg . Why? Because most economic models are based on the idea that individuals make... More »

Writers Unlikely to Find Happy Ending in Strike

Idealism trumps wallet in such disputes, New Yorker pundit writes

(Newser) - Strikes typically cost both parties more than they’re warring over, but labor relations aren’t “economically rational,” explains the New Yorker’s James Surowiecki, due to “asymmetric information.” Hollywood’s writers simply don’t know the underlying financial truth behind online revenues—the meat of... More »

2 Stories