Europe likes nudges
People in Europe support ‘nudging’ approaches by government, says this research paper. Denmark and Hungary are two exceptions because of mistrust of officials. But all six countries agree that government should not take people’s money without their consent and should never manipulate people, even with subconscious advertising.
Billion prices project
Economist Tim Harford blogs about applying the big data concept to inflation by collecting a billion prices weekly from hundreds of retailers in 60 countries. The approach helps explain why recessions happen (in part) because prices don’t keep pace in the face of a slowdown. This price rigidity, like a small rock, starts an avalanche, Harford says.
Credit card bias
Ever wondered why there are so many credit cards on the market with different rates, cash-back and reward programmes? This paper asks if card issuers screen customers for behavioural biases to maximise profits. Low introductory rates are offered to less educated and poorer people, while richer ones are favoured with miles, cash-back and points.