Still having those economics discussions.
I keep diverging from economic theory and focusing on what actually happens though. That's because my interest in economics was sparked by the absurdity of someone winning a Nobel Prize for the mundane notion that humans don't necessarily follow economic theory.
Daniel Kahneman has integrated insights from psychology into economics, thereby laying the foundation for a new field of research. Kahneman’s main findings concern decision-making under uncertainty, where he has demonstrated how human decisions may systematically depart from those predicted by standard economic theory. Together with Amos Tversky (deceased in 1996), he has formulated prospect theory as an alternative, that better accounts for observed behavior. Kahneman has also discovered how human judgment may take heuristic shortcuts that systematically depart from basic principles of probability. His work has inspired a new generation of researchers in economics and finance to enrich economic theory using insights from cognitive psychology into intrinsic human motivation.
This is too new to have filtered down in any detail such that it would affect the discussions on BlogNet. Still, you'd think that obvious…
