Tag: john-kay
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Against Behavioural Economics and Irrationality
Praising Maurice Allais as the father of behavioural economics rather than Kahneman and Tversky, John Kay introduces us to some of Allais’ ideas while simultaneously providing one of the finest arguments against the simplistic view of behavioural economics as the study of irrationality: The skill of piecing together sense from fragmented and inaccurate information is a central…
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Bonus Cultures and Ideal Banks, Schools, Hospitals
In light of the ongoing debate with regards to the financial sector’s so-called ‘bonus culture’, economist John Kay looks briefly at the history of the bonus and why the idea of a ‘bonus culture’ is a “poor joke” (using the example of teacher and doctor bonuses). At one time, the offer and receipt of a…
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The Truth About Markets
My current read, The Truth About Markets/Culture and Prosperity (UK/US title respectively), is a thoroughly enjoyable—if occasionally dense and dry—introduction to economic theories and applications. Published in 2003, it’s aged fairly well. I felt the need to share this two-paragraph excerpt from a section discussing “large models purportedly descriptive of entire economic systems” (pp. 193-194): The…