Nobel Prize winning economist Thomas Schelling died on 13 December 2016. His Economist obituary says that although his work laid the foundations for future behavioural economists, it remained largely unrecognised. He worked on the problem of addiction and believed that addicts have two selves. For example, in the case of smokers: one keen on healthy lungs, and another craving a fag and self-control is the battle ground.
We make up to 35,000 decisions every day: could this insurance company infographic help? It illustrates some of the most common cognitive biases to watch out for in your everyday life. Examples include the bandwagon effect which makes you do things because people around you are doing them and the Dunning-Kruger effect which makes less-able people considerably more likely to overestimate their abilities.
Be a better spender
New year, new you, that’s the mantra everywhere. In the same spirit, Scientific American magazine lists some tips for better spending that also make you happy, such as: buy things that give you the gift of time, spend when you’re smiling (not when you’re stressed), beware of the magpie effect ‒ which means don’t just buy shiny things you don’t need and ignore the sale signs.