The rational choice theory in economics assumes that consumers are rational. However, as in most cases of social science, such assumption is quite limited, thereby leading to plenty of economists’ questioning it and measuring its plausibility. Such economists are also referred to as behavioral economist. Dan Ariely, the author of the book Predictably Irrational, has dedicated his research to people’s behaviors in regards to situations involving money and social values namely by questioning that rational choice theory’s assumption. Continue reading
Tag Archives: economy
Among the biggest debates not only in the U.S. but all over the world as well is health care. People have cherished good health over the years so much that in most cultures there is at least one general wish that has to do with the other side’s good health. Continue reading
The current economic and financial crisis, which has lasted for more than two years so far, urged both experts and non-experts to reconsider their views about the size of their government, its involvement in their lives and also their spending habits and plans for their future. Unemployment rates have hit the two digits, while most of us – regardless of whether we are employed, underemployed, unemployed, laid off, or looking for a job – have lost money in one form or another. Some of us have lost money because of what is going on with the financial markets, others got themselves into schemes and so on. These issues returned politicians back to the stage. Continue reading
How does the economy work and what do we do about it? Now that it is struggling, more people are getting interested in its mechanisms. It is a complex system to which different tools can be applied which can help, hurt or have no impact over it. Depending on the tools being applied to a specific economy (local, regional, state, even world), nowadays it is divided into two types – free market economy and planning economy. Both of them have their advantages and disadvantages but the former has already been proven to be better than the latter. Continue reading
Will the African Union become the United States of Africa similar to the United States of America and the European Union? Globalization has made it somewhat fashionable to establish political mergers, and the African leaders’ plan seems like a bright idea at first sight. So much for the good news though.