The variety of posts of this blog is the proof that the potential applications of Behavioural Economics are plenty. The present article reviews a paper in which the author, Pickett (2018), illustrates some examples of its use for crime deterrence. The decision of committing a crime has been analysed in economic terms with a simple model where potential offenders evaluate the […]
Prospect Theory highlights the fundamental role of the Endowment Effect in trading goods: the value people give to certain goods is highly influenced by their initial endowment (reference point).
Review of a paper by Liu, Feng, Suo, Lee, Li (2012) In previous posts (“Scarcity”, “Through the psychology of poverty”), we showed how scarcity affects the way people consider problems and take decisions. Although scarcity may concern many kinds of goods, including even available time, in this article we will consider only the lack of […]
Review of a paper by Fryer, Levitt, List and Sadoff (2012) Improving the productivity of teachers has long been a priority in Public Policy. In recent years, there has been growing enthusiasm among policy makers for initiatives that tie teacher incentives to the achievement of their students. However, evidence as to the efficacy of such […]
Taking into account economic behavior in the environmental economic political process could change the impact of economic measures
Review of Hawton K., Bergen H., Simkin S., Dodd S., Pocock P., Bernal W., Gunnel D., Kapur N. (2013) Have you ever noticed that sometimes very small obstacles prevent you from completing a task or pursuing an objective? For instance, you might have thought about changing your phone provider since your offer was not convenient […]
Review of the paper by Michael P. Haines (1996) It is well-known that increased alcohol consumption of young people is a persistent problem and college and university students are no exception. The Northern Illinois University (NIU) came up with a solution that has since spread to other US universities and even high schools. It all […]
What explains the differences in economic decisions amongst poor and rich individuals? In 2014 Johannes Haushofer and Ernst Fehr, professors at Princeton and Zurich University, respectively, have written the article “On the Psychology of Poverty” for the Science magazine (original version here). They show evidence that poverty causes psychological consequences such as negative affectivity and […]