Archive for Behavioural Economics


Perspective is Everything

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The circumstances of our lives may matter less than how we see them, says Rory Sutherland in this TedX video.

Now the problem is, when you can’t smoke, if you stand and stare out of the window on your own, you’re an antisocial, friendless idiot. If you stand and stare out of the window on your own with a cigarette, you’re a fucking philosopher.

So the power of reframing things cannot be overstated. What we have is exactly the same thing, the same activity, but one of them makes you feel great and the other one, with just a small change of posture, makes you feel terrible. And I think one of the problems with classical economics is it’s absolutely preoccupied with reality. And reality isn’t a particularly good guide to human happiness.” Read More→


Experience, Memory and Happiness

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Nobel laureate and founder of behavioral economics Daniel Kahneman reveals how our “experiencing selves” and our “remembering selves” perceive happiness differently. This new insight of the Two Selves within has profound implications for economics, public policy — and our own self-awareness.

We need to consider experience and memory separately when we study happiness, i.e. what we experience in the present is not what we remember after the fact. This is of utmost importance in a world that is starting to recognise how well-being and ‘happiness’ impact our economy and life generally. Considering that all public policies, work organistion

“We do not attend to the same things when we live our life and when we think about it”, says Daniel Kahneman. “Happiness is not a substitute to well-being, it is a completely different notion.”