Tom SpencerHaving taught undergraduate economics for a number of years, I wanted to pen a list of some of the ideas that appear flawed but which form the basic pillars of mainstream economics. Although professional economists are often familiar with the weak points in their discipline, the problem lies in the fact that the ideas are […]
Loss aversion can lead people to favour the status quo, and so clever marketing is sometimes needed to convince people to buy new products LOSS AVERSION can lead people to favour the status quo. How so? Well, when a consumer considers replacing a good, the presence of loss aversion can lead her to experience more pain […]
“Everything is relative in this world, where change alone endures” (Leon Trotsky) IF you were offered the chance to win or lose $100 on the basis of a coin flip, would you take the bet? If you are like most people, you would probably decline the wager. Even though the gamble offers an even chance […]