Questions From Last Week?
Questions From Last Week?
Questions For Review?
Questions For Review?
The Midterm Probably one question with numbers along the same general lines as the railroad/farmer examples Otherwise short explanations of ideas You are responsible for everything in the book so far
The Midterm • Probably one question with numbers along the same general lines as the railroad/farmer examples • Otherwise short explanations of ideas • You are responsible for everything in the book so far
Review We have been learning the tools That we will use in the rest of the semester To make sense of different parts of the legal system
Review • We have been learning the tools • That we will use in the rest of the semester • To make sense of different parts of the legal system
What is Economics? A way of understanding behavior Rationality Individuals have objectives and tend to take the actions that best achieve them To give it content needs some knowledge of human objectives And it is not entirely true,but... Arguably rationality is the predictableelement in behavior And much irrationality is random and averages out Alternative approach:Predictable irrationality Might work for oneself I can resist anything but temptation So avoid having bowls of potato chips in my viscinity Kahneman's work a more general attempt at a theory of irrationality ·Behavioral economics'” ·But not for this class
What is Economics? • A way of understanding behavior • Rationality : Individuals have objectives and tend to take the actions that best achieve them • To give it content needs some knowledge of human objectives • And it is not entirely true, but … • Arguably rationality is the predictable element in behavior • And much irrationality is random and averages out • Alternative approach: Predictable irrationality • Might work for oneself • I can resist anything but temptation • So avoid having bowls of potato chips in my viscinity • Kahneman’s work a more general attempt at a theory of irrationality • “Behavioral economics” • But not for this class