The Sunk Cost Fallacy

  “If you’ve ever held on to a pair of shoes that make your feet ache or a pair of pants that no longer fit you for no other reason than you paid a lot of money for them, you’ve experienced the sunk-cost bias.” In both business and personal finance, fiscal responsibility is constantly preached…

The False Curve

Must we wait for things to get worse before they get better? Economics is a land of fables. One of the most fascinating stories that a student of economics might have come across, is the story of the Kuznets Curve. The story goes back to 1955, when a brilliant American economist, Simon Kuznets, gathered data…

The Behavioral Signs of the Recession

One of the most unconventional ways to know if we are headed towards a recession is by looking at a baby’s bottom. Yes, that’s right. Studies find that parents end up changing baby diapers less frequently in times of a recession, which in turn causes an increase in the sales of baby rash creams. According…

Lamppost Theory

Ever heard of economists and politicians opening two contradictory views about matters that are largely related to the economy and wondered how can politicians digress from what’s being suggested and claimed by people who’ve been formally trained for years to deal with economic issues? Well, that’s not an unusual situation after all and it is…

ReKindle-ing the Magic of Print

Books are uniquely portable magic.  -Stephan Hawking   There has been a constant change in the way a person chooses to pass their time. It can either be playing a sport, cycling, swimming or reading a book. Reading books has always been known to be the best source of knowledge, whether an autobiography, novel, a religious…

Date-onomics

Joe Birger, a financial writer for Fortune Magazine wrote and published a book in 2015 on the concept of what he called Date-onomics, wanting to find out why dating is so difficult for some while others have it easy. He used the simple concept of musical chairs to explain this theory. He states, “The longer…

Sustainable Restaurants: The Future of the Hospitality Industry

“Green is no longer just a trend. It’s a way of life”  With the growing awareness of environmental and climatic conditions that the world is facing, the knowledge of how every individual can contribute to resolving these global issues by bringing about small but significant changes in our way of life is also expanding. Many…

Jumping on the B(r)andwagon

Remember when you owned those pair of Converse shoes when you were younger and wore them wherever possible because everybody you knew did the same? Mostly because it was considered to be “cool” and the “in” thing? Well, this is the “bandwagon effect” for you. The bandwagon effect refers to people’s propensity to do something simply…

All you need to know about the Global Recession of 2020

During the period between July 2008 and June 2009, major economies suffered a domino effect of the US recession after the country’s housing market collapsed. It was the most severe economic crisis witnessed in the US since the Great Depression in the 1930s. In the 10 years that followed, we saw the world enjoying a…

Mind-ing One’s Business

Segmenting the market is passé- today, it’s all about segmenting the brain!    Thanks to Neuromarketing, regions of the mind are now the battlefields where modern brand wars are fought. Coke versus Pepsi is perhaps the best example of such a collision. In 2004, Simon McClure and his associates conducted a path-breaking experiment studying consumer…