Monthly Archives: July 2006

You always want to try to get the best deal, right? NOT!

On the face of it, it sounds like trying to get the best deal is a good thing. Who wouldn’t want to get the best possible product for the least possible price? But economic theory and psychology research show that … Continue reading

Posted in economics, psychology, satisficing vs optimizing, spending | 5 Comments

The conflict between psychology and economics

One of the underlying assumptions of economics is the idea of human rationality–that people will attempt to maximize their own well-being, or “utility.” In contrast, some perspectives in psychology–most notably the psychoanalytic–have presumed the fundamental irrationality–the “psycho-logic” (as opposed to … Continue reading

Posted in economics, psychology, rational vs irrational | 4 Comments