Sunday, January 25, 2015
Kate Brown, Chapter 1, Question #6.
One passage that struck me as significant was the passage that explained the fallacy of strict rationality. Though described through the use of a seemingly trivial example the author clearly illustrates a person's inability to always act in a way that is best for them in the long run. Despite the fact that it seems illogical this section explains that it is sometime best to take a way an option in order to point someone in the right direction. This section also brings up the connection between economics and psychology and how the best economies are able to interpret what people want and what is best for them long term.
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I understand what you are trying to say, but do you think that the best economies strive to sell goods that are better for people in the long run, while trying to balance what people will want short term? If so, should more long term goods be sold then short term goods or vice versa?
ReplyDeleteI found the integration of psychology into economics to be very interesting. Instead of simply being just economics, there are multiple areas of research that get applied and that are used in economics, psychology being one of them.
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