Judgment or Experience?
Many American citizens claim our President needs a strategy and a vision for the future. The most common complaints are about a lack of vision on the economy, health care and in our response to terrorism and the war in Iraq. According to this way of thinking, George Bush has not [...]
behavioral economics's tag archives
Vision, Tactics, and Stubbornness
Aug
Personality type may decide elections
Aug
Voters in America are concrete, specific, and focused on the here and now by a margin of 3 to 1. To me, this has a real impact on the outcome of primary and Presidential races as candidates must speak in a way that resonates with those voters. But, there are other important ways [...]
51 views
Cognitive dissonance
Aug
In psychology, cognitive dissonance is an uncomfortable feeling or stress caused by holding two contradictory ideas simultaneously. The theory of cognitive dissonance proposes that people have a fundamental cognitive drive to reduce this dissonance by modifying an existing belief, or rejecting one of the contradictory ideas.
Often one of the ideas is a fundamental element of [...]
36 views
Loss aversion and finding a bottom
Aug
About five years ago, Daniel Kahnemann won the Nobel Prize in Economics for his work on Behavioral Economics. This was a breakthrough because the financial markets and the economics profession had been dominated by the “efficient market,” laissez-faire, no-regulation crowd for some time.
His theories go a long way toward explaining why the credit [...]
165 views
Principal-agent problem, part 1: banks
Jul
As the financial sector melts down, one wonders which institutions are the safest: smaller local banks, money center banks, super regionals, credit unions. Credit unions are certainly something to think about becuase they offer high rates of deposit interest and low rates on loans.
I don’t know if credit unions are safer than banks across the [...]
What motivates Hillary? Part 2
May
Yesterday, I said that Hillary Rodham Clinton is imminently qualified to be President of the United States. That’s why she is running for office. I believe that she is still running for office in large part because she thinks she is a better candidate than Barack Obama.
I’m not going to runWhen Hillary Clinton was preparing [...]
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Leadership style
Apr
I was doing a last run through of certain items on the Internet before bed and I ran across an interesting piece from David Gergen, a political analyst who served in the Nixon, Ford, Reagan and Clinton administrations. He had a blurb from his book “Eyewitness to Power, “that spoke to leadership style and [...]
The P in Obama’s ENTP
Apr
As the Jeremiah Wright National Press Club (NPC) debacle gathered steam, many wondered where the hell is Barack Obama. As I am on his mailing list, the only thing I heard from his campaign was yesterday at 9:15 in an e-mail about Limited Edition Car Magnets. I wondered, “do they not see the [...]
191 views
The problem with us bitter and clinging folk
Apr
The debate over Barack Obama’s comments about small-town Pennsylvania voters seems misguided. It has nothing to do with political issues. It has nothing to do with effete, chardonnay-guzzling liberals. It’s an issue of how personality and personality type color how one sees the world.
Just in case you forgot, Obama got up in early April [...]
15 views
Could Abraham Lincoln get elected today?
Apr
This morning I was reading an article on the Internet about Nash McCabe, the woman who asked Barack Obama why he doesn’t wear an American flagpin at this past Wednesday’s awful ABC televised debate. Overlooking how ludicrous it is that the media have given legitimacy to this kind of question, the article really did [...]
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