Tagged
thaler
quote
[M]ost people don’t view a spike in demand as an acceptable excuse to raise prices. Such judgments are puzzling to economists, business executives and M.B.A. students… Why can’t managers anticipate that their actions might provoke such outrage? The best explanation may be that people’s fairness judgments are gut reactions, not economic analyses.
Behavioral economics 101 from guru Richard Thaler in the
NY Times. The article also plugs Daniel Kahneman’s
latest book, which should hopefully be waiting for me in the mail when I get home.