Wednesday, 16 November 2011

Behavioural economics: Not just making up the numbers

This refers to an article in London's Metro free newspaper, by Rory Sutherland -
"Those wedded to a neo-classical economic view of the world are liable to assume that the world's population consists entirely of independent actors making decisions on the basis of rational, calculating self-interest. ... "Homo economicus" - a beast created to conceive elegant mathematical models of behaviour but with no regard for how people behave in reality. ... Opponents of this view, ... such as George Soros and Charlie Munger have long been enthusiasts for behavioural economics. ... A recession, combined growing concerns over the environment , are increasingly leading people to believe that the way to solve the many human problems is not with 'more stuff' but by using less stuf in a more humman centred way.

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