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Every Investor Chicago Uni - Behavioural Economics Traditional economics holds that humans, as rational beings, make choices to maximize their welfare. Chicago’s Richard Thaler argues that policy makers—including those working on President Bush’s plan to partially privatize Social Security—would do well to remember that rationality has its bounds. The advertisements appeared in late August 2000 on Swedish television and in women’s magazines, traveling to billboards and bus stops and the pages of daily newspapers. They were variations on a theme. Two people have a discussion. “There’s no reason to think that markets always drive people to what’s good for them.” A few weeks later Sweden’s 4.4 million working-age adults received blue packets in the mail. So began what Richard Thaler, the Robert P. The paper is a classic example of the growing literature in behavioral economics, a school of thought that, under Thaler’s leadership over the past 30 years, has been seeping into economics departments and academic journals.
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A new runway at Heathrow will never be built. Accept it - Telegraph When Britain’s airports were privatised back in the 1980s, they were sold off as a single company. As it happens, this was against the better judgment of the presiding secretary of state, who favoured a more competitive landscape for airport capacity. But he lost the argument to the City, which refused to buy unless sold a monopoly. The upshot was that whenever the question of further expanding London airport capacity came up there was only ever one serious proposal – another runway at Heathrow. Break-up of the British Airports Authority has allowed Gatwick to come forward with its own competing plans, together with an entirely different pricing model for its users. In a perfect world, the choice would ultimately be market-based. Such largesse is never going to happen in London, which is forever fated to run at close to full capacity, with extra runway added on an ad hoc basis as and when demand commands it. And who wants a “hub” anyway.