Dealing with uncertainty, Black Swans, Coronavirus, Stock Market Crashes
The flaw that humanity’s approach to probability is that we confuse lack of evidence with proof of certainty.
Category: Behavioral Economics
Buying Supreme will make you less happy (maybe)
Conspicuous spending is defined as the purchase of goods and services primarily for showcasing one’s status and economic wealth to society. It is a display of power.
Decision Making: Sunk Cost Fallacy
At the end of the day, the sunk cost fallacy is caused by pride, loss aversion, and irrational commitment to past decisions. The sunk cost fallacy makes us stupid. Don’t let it trick you.
Decision Making: Accounting Costs vs. Economic Costs
There ain’t no such thing as a free lunch. Every economist will tell you this. Why? Opportunity costs!
The Economics of Chrismas and Gift Giving
Because I’d much rather have cash
