Econowmics Blog

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Opportunity Cost

Opportunity cost, to put it as simply as possible, is the price you have to pay in order to obtain something else. It is what you lose, to gain something else. Opportunity cost is...

The False Mirror | René Magritte | 1928

Actor-Observer Bias

You  are  at  the  casino  watching  a  game  of  Black  Jack, when a player who has a hand of sixteen asks for another card.   You quip to yourself “What an idiot!   He should have...

The False Consensus Effect

The False Consensus Effect

The false consensus effect demonstrates an inability of individuals to process information rationally, it suggests that conventional economic analysis of strategic behavior, which assumes unbiased expectation formation, is deficient. A Simple Theory of the...