Question

Rosalsky embarked on a long and tortuous process to live his life like homo economist. Describe Rosalsky experience and behavioral economist Richard Thaler advice on

A: how to get a seat on a subway
B: how to play the dating market
C: whether to pay for public goods like free music.
2: Rosalsky also ponders whether voting is a rational act. what are the arguments that it is and it is not.
3: Would it be good or even possible for people to live like economist say we do.

Answer 1

• how to get a seat on a subway:
  • Greg Rosalsky experiences some social norms when asking passengers a price that Rosalsky could pay for their seat. Feedback from the people that he asked are often thinking he is a weirdo, ask for much higher price, or would give out their seat for free for people in need.
  • Richard Thaler’s advice is that we should offer a price that is “higher than their utility of sitting.”
• how to play the dating market
  • Thaler’s advice that he should think about opportunity cost, how likely to find somebody better, or when you are dating this girl, are you willing to give up on other opportunities.
  • Took Thaler’s advice, Rosalsky did a spreadsheet about opportunity cost, benefits, and probabilities on certain subjects. Couple months later, he shares that is it good that he did the economicus thinking but he does not support that his relationship is fully success based on economic decision.
• whether to pay for public goods like free music.
  • Thaler said economicus would be very likely to not pay for public good, such as free music since it is free, and they could get free utility out of it.
  • Rosalsky’s experience a conflict on whether or not he should put in his vote. If he thinks with homo ecomomicus thinking, he would not vote since it would not give him any instant utility that benefit him.

2. Rosalsky also ponders whether voting is a rational act. What are the arguments that it is, and it isn't?

There are too types of people when it is voting season:

- people that won’t be voting since some people think it is just one vote and it would not be matter, or it take too long to vote and would not get any benefit.

- people who vote either they just vote for fun and get a sticker, or they think voting is their responsibility or duty and would love to see their vote change the country better.

3. Would it be good or even possible for people to live like economists say they do?

- It is possible to live like an economists, but the world would become a sad place. Economists would only focus on their benefits and only do what bring high utilities to them. But human is not totally selfish. We have feeling, and our decision partly depends on our moods. It is hard for people to live like economists and also it is not good.