[Photo credit: Lending Memo]

We are all economists

Mainstream and behavioural economics are two sides of the same coin

The term ‘economics’ tends to incite a lot of passion. For many people it typifies a cold, emotionless perspective on life that just looks at money. It represents the cynical world view of those who, as Oscar Wilde said, “know the price of everything and the value of nothing”.

Adam Smith — Grandaddy of Behavioural Economics (Adam Smith Business School/Wikimedia)

“Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.

What comes immediately to mind when talking about scarce means is, of course, money. You can use each pound, dollar or euro only once. And if — like most people — you only have a limited supply of them, you have to choose where you spend it, whether you’re an individual, a household or a firm.

Speeding through the aisles at 766% ROI

Accidental behavioural economist in search of wisdom. Uses insights from (behavioural) economics in organization development. On Twitter as @koenfucius

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