What I learned today:
The term behavioral economics - based on the presumption that human beings do not know what's good for them - they are highly suggestive and they act in a lazy and greedy fashion.
Main themes of behavioral economics:
Heuristics: People often make decisions based on approximate rules of thumb, not strictly rational analysis. See also cognitive biases and bounded rationality.
Framing: The way a problem or decision is presented to the decision maker will affect their action.
Market inefficiencies: There are explanations for observed market outcomes that are contrary to rational expectations and market efficiency. These include mis-pricings, non-rational decision making, and return anomalies. Richard Thaler, in particular, has described specific market anomalies from a behavioral perspective.
Economists in the Obama administration are behavioral economists.
Example of BE: Teenage moms were given $1 a day for each day they were not pregnant and it worked!!
Something I keep forgetting:
Ascii codes for:
0 - 48
A - 65
a - 97
Something I learnt about fixing bugs:
Focus on narrowing down the cause before narrowing down the fix.
Special moments:
Chirag's 6 month appointment. He consumed more paper at the doctors office.
