Monday, July 09, 2007

Neuroeconomics

"In this game, one player divides a pot of money between himself and another. The other then chooses whether to accept the offer. If he rejects it, neither player benefits. And despite the instincts of classical economics, a stingy offer (one that is less than about a quarter of the total) is, indeed, usually rejected. The question is, why?" (Money isn't everything, Jul 5th 2007, From The Economist print edition)

Psychologists has done experiments that people actually prefer to be paid 70,000 to live among the people that are paid 60,000 per year; rather than 80,000 among people who are paid 90,000 per year.

Reading a book on complexity economics, about economics that evolves itself. Its a branch that seeks to explain the failure of traditional classical economists trying to explain the world using simplified assumptions, such as people make decisions rationally. Talk more about it.

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