Just back from a trip to New York where, I’m delighted to report, a distinguished panel of judges agonized over whether to give the Bastiat Prize for journalism to me or to the excellent Jamie Whyte for so long that they had to give it to us both. Check out some fantastic essays byJamie, Ila Patnaik, Gabriel Rozenberg and the other shortlisted writers.
An article written by Tim Harford on the 4th of November, 2006.
Dear Economist...
Being a considerate father, I am planning a monetary incentive scheme to improve my 18-year-old son’s marks at school. Instead of executing a relative’s bequest as decreed, I intend to spend the €7,000 rewarding good results. During three semesters, he will have to pass 48 preliminary tests, then the main exams in the fourth and last semester. How should I divide up the capital?
Robert Saverin, a grateful fatherUndercover Economist
While marketers and psychologists have long known that you can fool all of the people some of the time and some of the people all of the time, it has taken economic theory a little while to catch up with the idea. Most economic models are populated by decision-makers who have more in common with the cool-headed logician Mr Spock than the impulsive and self-destructive Homer Simpson.
There are good reasons for that...
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