philosophy

  • Behavioural Economics

    The book I read to research this post was Behavioural Economics For Dummies by Morris Altman which is a very good book which I bought from kindle. This book is about a subject that has only recently started to be taken seriously and in certain other quarters especially among economists alot of people dismiss it. With economics it's often assumed most people will respond to market forces in a certain way often favourable to the economist which simply doesn't happen. You might find a product is the best of its type on the market and gets favourable reviews but sells poorly. Equally you might find a company making good profits and its products doing well but its shares perform badly. Of course this is about human nature and this book would best suit someone interested in economics. This book is about why people are so fickle and is there a way to predict what is going to happen. Interestingly if someone has to give up a small amount of money to gain a larger amount most people won't risk it because losing the money upsets them more than the potential happiness they are set to achieve by the profit. Equally some people were asked if you lost $50 you were due to buy a concert ticket with would you still buy the ticket and most people said yes but if they lost the concert ticket most people said no. This book only delves into this subject a little as it is a very complex subject and the book isn't as easy to understand as some for dummies books. A final point is if a country has rich ores and mineral resources you would think it would be wealthy but many countries have corruption and bad government which keeps the general populace poor. Equally some countries are the complete opposite where what mineral wealth they have is well managed.

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