Feb 14, 2015
5:02:14pm
5:02:14pm
One of the things people are figuring in economics
is people are not completely rational.
Prospect theory is an attempt to model behavior rather than to model what is 'rational' in economics.
The way I see it is there is no way in heck I am going to be disciplined enough to invest the 20$ per month. I am much more likely to invest it when I receive a large lump sum as opposed to an extra 20 I can just use on groceries.
It is interesting for sure.
Prospect theory is an attempt to model behavior rather than to model what is 'rational' in economics.
The way I see it is there is no way in heck I am going to be disciplined enough to invest the 20$ per month. I am much more likely to invest it when I receive a large lump sum as opposed to an extra 20 I can just use on groceries.
It is interesting for sure.
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- conetah
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