Rethinking Economics – Decision by Sampling, or ‘Psychologists Reclaim Their Turf’

Summary:
Economists use a lot of math and so like to keep the study of individual preferences very simple, says this article. But psychologists know that an individual's preferences are strongly related to the group they are in.For instance, go to a party where everyone is knocking the beer and wine back and you might think that having two glasses of wine is very moderate. But go to another party where everyone is teetotal but they say they will open up bottle of wine for you if you want, you might think having two glasses of wine is a bit excessive.This is a nice short essay. Economists like to base their theories on individual decision making. Individuals, the idea goes, have their own interests and preferences, and if we don’t include these in our theory we can’t be sure how people will react

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