Out of all of the various areas and branches of economics, none has captured my interest more than ‘behavioural economics’. This studies the links between psychology and economics to try to discover more about how the individual thinks when faced with decisions. It brings to light the irrationality of the human being, and the flaws of many classical economic models, which assume rational behaviour at all times. Israeli psychologist Daniel Kahneman was one of the pioneers of this field of […]
Before we get down to the maths, let me digress to explain why there is a still from BBC’s motoring magazine Top Gear at the top of this page. In the last few series of the show, I have noticed an interesting tendency for BBC to include attractive women in the camera shot whilst the presenters are sitting in the foreground. The image above shows a prime example of this. Whether this is a conscious attempt at subliminal messaging targeted […]