Caveman economics

I am greatly enjoying Predictably Irrational by Dan Ariely - who spoke at the LSE last week (there was a long queue of my students wanting to buy the book). Today’s Mail on Sunday previews another example of the new genre of popular books on behavioural economics written by Professor Pete Lunn from the Economic and Social Research Institute and given the enticing title Basic Instincts: Human Nature and the New Economics. It is published by Marshall Cavendish next month, few details available yet. I will keep my eye out and add to the blog when they are more widely known.

Common mistakes in daily decisions

The Old Theatre at the LSE was completely packed last evening for an entertaining and riveting lecture from Dan Ariely, the author of ”Predictable Irrationality”. Dan Ariely has for many years used experimental methods to discover more about many of the biases apparent in our everyday behaviour. His lecture was rich in examples and encouraged us at all times to think counter-intuitively. 

Dan Ariely in London on the 17th

Thanks to Arthur Ma for pointing out that Dan Ariely, the author of ”Predictably Irrational” is in London next Monday to talk about his book. Details below.

Behavioural Economics: Common Mistakes in Daily Decisions
Date: Monday 17 March 2008
Time: 6.30-8pm
Venue: Old Theatre, Old Building, LSE
Speaker: Professor Dan Ariely
Chair: Professor Lawrence Phillips

Why do smart people make irrational decisions every day? Why do we repeatedly make the same mistakes when we make our selections? How do our expectations influence our actual opinions and decisions? The answers, as revealed by behavioural economist Professor Dan Ariely of MIT, will surprise you.

Carrots and Sticks

Half-term brings a time for reflection and on the train heading north with the family, to visit family, I maintained my fix of economics via The Economist. I particularly enjoyed an article on StickK.com, a website allowing users to set and monitor contracts to achieve personal goals. The founders, graduate economics students Dean Karlan and John Romalis, got the idea when they used contracts to create sufficient incentives to both lose weight. If one failed to meet their weight loss target, they were to pay the other $10,000. It worked (unsurprisingly?) and now the site apparently has 50,000 users who have pledged either serious sums of money (to charity) or public humiliation (via the website) to provide sufficient incentives to succeed in giving up smoking, losing weight, taking more exercise or generally just becoming a better person.