Tuesday, May 13, 2008

Choices, Choices, Choices

For those of you interested in the area of behavioral economics, I have an interesting lead. The new issue of Capital Ideas, published by the University of Chicago Graduate Business School is devoted to research on how we make choices.

As you know, a basic assumption of economics is that individuals are rational. As you also know, it doesn't always seem that way. The area of behavioral economics has evolved to try and reconcile this seeming contradiction.

While I've not read the entire issue, the article summaries look very interesting. And given the popularity of a recent book, Predictably Irrational by Dan Ariely, this should make interesting parallel reading. (By the way, if you are looking for an interesting debate on the question of how irrational we are, check out this site featuring a discussion between Ariely and Tim Harford, author of The Logic of Life.)

I look forward to your comments.

I'm not sure how I missed this interview in yesterday's Real Time Economics blog with Richard Thaler, one of the authors in Capital Ideas. Anyway, the oversight is corrected.

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