What to learn from this year’s Nobel Prize laureate in economics!

What to learn from this year’s Nobel Prize laureate in economics!

This year’s Nobel Prize laureate in Economics is Richard Thaler. Like the majority of former recipients of this award, he is American – and man. He receives the award for ”incorporating psychologically realistic assumptions into economic decision making and exploring the consequences of limited rationality, social preferences and lack of self-control”. He is thus representative of the relatively new area of ​​behavioral economics, emphasizing that the classical economic theory, which relies on the premise that economic decisions are made by completely rational persons with complete information, does not hold. Thaler receives the award because he has shown that the individuals (or company’s) actual decisions are influenced by a number of psychological factors that are not taken into account in classical economic theory.

Continue reading “What to learn from this year’s Nobel Prize laureate in economics!” »

Vad vi kan lära av årets Nobelpristagare i ekonomi!

Vad vi kan lära av årets Nobelpristagare i ekonomi!

Årets Nobelpristagare i ekonomi heter Richard Thaler. Liksom majoriteten av tidigare mottagare av detta pris är han amerikan – och man. Han får priset för att ha ”inkorporerat psykologiskt realistiska antaganden i analyser av ekonomiskt beslutsfattande och utforskat konsekvensen av begränsad rationalitet, sociala preferenser och brist på självkontroll”. Han är alltså representant för det relativt nya området beteendeekonomi (behavioral economics) som betonar att den klassiska ekonomiska teorin, som vilar på att ekonomiska beslut görs av fullständigt rationella personer med fullständig information, inte håller. Thaler får priset för att han visat att i individens (eller företagets) faktiska beslut påverkas av ett flertal psykologiska faktorer som den klassiska ekonomiska teorin inte tar i beaktande.

Continue reading “Vad vi kan lära av årets Nobelpristagare i ekonomi!” »

Incompetent individuals manage test better

Incompetent individuals manage test better

Already Charles Darwin mentioned that it is often ignorance which gives a greater self-confidence rather than knowledge does (The Descent of Man, 1871). In the same way, it seems that incompetent and uncapable people often overestimate their competence and personal excellence, which brings them better test results on traditional self-report inventories. Moreover, it shows that the uncapable individuals believe that they are more talented than the averge when evaluating their own intelligence.

Continue reading “Incompetent individuals manage test better” »