“I’ll leave labeling the “school” of economics I fall into to others.” By Holly A. Bell When I discuss economic issues people often ask me which “school” of economic thought I subscribe to. This question usually leaves me a bit tongue-tied because my approach to economics doesn’t fit neatly into any specific “school” as they …
The Bell School of Economics: An Holistic and Interdisciplinary Approach Read More »
Relativity is not just for physics. Nicolae Naumof posts a very good introduction to the foundational concept of relativity in behavioral economics. Through two examples he describes how we use mental references, environmental factors, and comparisons to make what are sometimes less than purely rational decisions. From Naumof: “The pond effect shows us that people …
If you think you earn your money, you are wrong. As I have been watching the debates over the debt ceiling, the fiscal cliff, and taxation I am reminded of one assumption about money the government makes (often unconsciously) that those of us who think we should be allowed to keep the money we have …
You Can’t Keep Your Money Because It Belongs To The Government Read More »
[repostus hash=2b346fd31b93007a0e56b9f5ca87ae96 title=The+Quest+for+Certainty host=Market+Shadows short=1rjnE snip=The+Quest+for+Certainty+%E2%80%9CAs+far+as+the+laws+of+mathematics+refer+to+reality%2C+they+are+not+certain%3B+and+as+far+as+they+are+certain%2C+they+do+not+refer+to+reality.%E2%80%9D+%E2%80%93+Albert+Einstein+%E2%80%9CTo+trace+something+unknown+back+to+something+known+is+alleviating%2C+soothing%2C+gratifying+and+gives+moreover+a+feeling%26hellip%3B thumb=3138651 jump=5] Return to Home Page Certainty image courtesy of hin255
From the article by Andrew Sheng and Xiao Geng: “Indeed, today’s mainstream micro- and macroeconomic models are insufficient for exploring the dynamic and complex interactions among humans, institutions, and nature in our real economy. They fail to answer what Paul Samuelson identified as the key questions for economics – what, how, and for whom are …
Redefining Defined Benefit Pensions By Holly A. Bell For most people in the private sector, defined benefit pensions have become a distant memory. Something their grandfather talks about over Thanksgiving dinner while reminiscing about his days at “the plant”. These plans, which guaranteed a certain percentage of a worker’s wages or salary in retirement, have …
Nudging Retirement Savings: A New Approach to Pensions Read More »
Decision-makers perform worse as financial incentives increase Research by behavioral economist Dan Ariely (see video below) found that high financial incentives actually make individuals perform worse than when given low to moderate financial incentives. These results were most dramatic when the tasks involve cognitive elements as opposed to mechanical elements. The reason is that loss …
Do High Salaries & Bonuses Make CEOs Poor Decision-Makers? Read More »
What Penguins Know About Business: The Value of Sharing in Markets From Paul J. Zak at Claremont Graduate University: “There’s nothing new about being shameless, or ruthless and cynical, when it comes to making a buck. Plenty of people in business seem to think that fakery and exploitation is the name of the game. Which …
Why Self-Interest In Markets Can Benefit Everyone Read More »
Faculty are great at educating students–just keep them out of meetings. I still view higher education with a bit of an outsider’s lens as I spent the first 20+ years of my career in the “real world” of business. I’ve found higher ed. requires a sense of humor. Moving from a corporation to a university …
The Economics of Fame I have a good friend who loves to tell me I’m going to be famous someday. He seems to think the tipping point is just around the corner. I simply smile and say, “You’re too kind” because I know better. While fame is not something I’ve studied formally, I do have …
