Freakonomics Radio 207. Should We Really Behave Like Economists Say We Do?
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Jun 4, 2015 Explore living life as a rational decision-maker, applying expected utility theory to relationships, considering the costs and benefits of marriage and parenthood, and the impact of a relationship on pursuing a homo-economicist lifestyle. Learn about affordable furnishing options and financial planning tools. Discover the implications of public goods, the burden of being a sex offender, and the importance of civic associations for political engagement.
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Buying a Subway Seat Anecdote
- Greg tries paying subway riders to vacate their seats to ease his commute.
- Social norms override economic incentives, limiting success of this strategy.
Homo Economicus' Rational Ideal
- Homo economicus optimizes choices perfectly, avoiding self-control and sunk cost errors.
- Real humans misbehave by succumbing to emotions and irrational decision-making.
Spreadsheet Dating Anecdote
- Greg uses a spreadsheet to analyze relationship costs and probabilities before asking Rachel to be his girlfriend.
- Despite the mechanical approach, their relationship thrives beyond the spreadsheet moment.