Posts tagged as:

economy

The Endowment Effect

The Endowment Effect

by Roman on June 26, 2008

According to the dominant economic theory all decisions made by humans are rational. Humans are looked as beings who make rational decisions in order to maximize their wealth. Scientists even have a name for it – Homo economicus. The problem with Homo economicus is that it is the cornerstone in almost all modern theories that […]

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Here is a fun and addicting game to all you money loving FinancialJesus.com readers. In the Fed Chairman Game you are in charge or the national monetary policy of the US. Your goal is simple – you must adjust the Federal Funds rate in order to keep the inflation and unemployment rate stable. This game […]

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Experiments with money

3 experiments with money

by Roman on May 29, 2008

I am a big fan of behavioral economics which tries to explain why people act the way they do. Here are 3 interesting experiments that scientists have made in order to get a better insight into how people relate to money. The Ultimatum Game You are given 100 dollars. You need to decide how to […]

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