Monthly Archives: November 2012

The status quo bias

So many economic applications I teach involve incentives, means which motivate individuals to act in a certain way or to make a particular choice. Most often, in the classroom, this is in the context of economic incentives, such as a high tax on gasoline consumption providing me with an incentive to reduce my gasoline purchases […]

What makes a decision responsible?

Shane at Farnam Street points readers to Frankel: “A decision is responsible,” wrote Charles Frankel, “when the man or group that makes it has to answer for it to those who are directly or indirectly affected by it.” A great example of this is Hammurabi’s Code: If a builder builds a house for a man and […]

Tuesday TED Talk: Droids!

Andrew McAfee on jobs, machines, and a great look at history and technology:

When to bother studying?

Thanks to Frances Woolley for sharing a game theoretic application of students’ effort – The Student’s Dilemma:   As Woolley highlights, The outcome of this game depends upon how the two students value effort and grades. There are three possible scenarios. If Betty would rather get a B than study, so she prefers (B, no effort) to […]

Sunday Sound: Journey to the One

1980 – Pharoah Sanders: Doktor Pitt

How would you play the World’s Simplest Poker Game?

Thanks to Jeff Ely and David McAdams – I’m still thinking about this one. Anyone have a good strategy? Problem: Find the (unique) symmetic equilibrium of “The World’s Simplest Poker Game”, played as follows: **0** two players **1** each player pays ante of $100 **2** each player receives ONE card, which we can think of as independent random numbers on [0,1] **3** […]

Happy Thanksgiving!

Here’s one of ten fun facts about Thanksgiving from Erin at the OUP Blog: 5. A few months after the North’s military victories at Gettysburg and Vicksburg in the summer of 1863, Lincoln declared the last Thursday in November a national day of Thanksgiving. Every president since has proclaimed Thanksgiving Day a national holiday. However, […]