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Unless You Are Spock, Irrelevant Things Matter in Economic Behavior (2015)

61 pointsby kerckerover 7 years ago

3 comments

1123581321over 7 years ago
Economics makes no claims about what items, experiences or feelings should be demanded. It’s impossible to say that the students can’t value seeing a 95 on their test or that workers shouldn’t value not touching their retirement accounts. It’s actually a good thing when counterparties want to optimize different variables because it reduces the need to compromise, as the author brilliantly demonstrated in the anecdotes about test scoring and tax-advantaged accounts, and this kind of negotiation is modeled by economists.<p>The cost of obtaining and trusting information also explains a lot of “irrational” behavior, and it is modeled by economists.<p>Finally, I’ll note there are markets where buyers and sellers rationally prefer money and consistently act on that preference — simple models are sometimes useful, just like simple approaches in other fields.
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gumbyover 7 years ago
Econ students or not the prof should have failed the complainers for not understanding &quot;the material&quot; (in this case the clear scoring rubric).<p>I remember a physics exam of the sort &quot;here are three questions; you have four hours answer one&quot;. I couldn&#x27;t answer any so just struggled for a while on the first; I ended up with 25% for work shown and, to my astonishment, the only passing grade.<p>(BTW the big lesson from that, which has been useful all my professional life, is &quot;show your work&quot;. It means I can come back to it later, or I can collaborate with &#x2F; ask for help from another person, who can show me where I&#x27;m a bozo or forgetting something or need to learn something).
gt_over 7 years ago
Another example of why even the more open minded and critical of the humanities crowd has such a difficult time taking economists seriously.
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