economics – Page 4 – Sound Economics

Snobby Beer

Posted on February 19, 2015 by Connor Lennon — No Comments ↓

Aside from the actual game itself, this past super-bowl weekend carried with it an interesting development in a non-football related field that is quite close to my heart: beer. Budweiser aired this commercial during the game, to the annoyance of people who apparently like to spend lots of money on beer they don’t drink. Ninkasi, a northwest brewery located in Eugene, immediately shot back with a quite hilarious response video. The point is that for many years now, craft brewers and the big macro brewers like Budweiser and Coors have been increasingly competing for the same market share. While I can Continue reading Snobby Beer→

The Science of Decision-Making: Behavioral Economics

Posted on January 26, 2015 by Lorraine Black — No Comments ↓

Most economic models and theories rely on the assumption that people (consumers, producers, etc.) are rational. The idea of homo economicus, or the “economic human”, represents the perfectly rational and perfectly imaginary individual represented in most of economics. The assumption of rationality keeps models straightforward and results consistent. Rational people buy low and sell high, they always purchase a perfectly balanced bundle of goods that satisfies them completely, and they definitely consider consumer/producer surplus when buying Christmas presents and/or the opportunity costs when buying a house or a car. The economic human is psychologically rational and fundamentally self-interested. However, we Continue reading The Science of Decision-Making: Behavioral Economics→