The Economics of a Stellar Civilization

A Theory of Infinite Supply There will come a time when humanity must choose between interplanetary colonization and extinction. Humanity’s shift to an interplanetary species may seem science fiction but it is both inevitable and undergoing. There is no question that this gargantuan shift will change our perception of the endless cosmos.  However, something that…

IKEA Effect: When Labour leads to Love

Have you ever breathed a sigh of relief, smiled wide and felt a sense of accomplishment after completing a puzzle? Not just puzzles, have you ever baked a cake and ended up valuing it more than a ready-made one? If your answer is yes, then you have experienced what one calls, “The IKEA Effect.” As…

The Antibiotic Paradox

What doesn’t Kill you, Makes you Stronger “Invent a bad antibiotic, and no one will use it.  Invent a really good antibiotic, and really no one will use it.”  ~  John Rex, Physician Here’s a dilemma: A patient approaches their doctor presenting some symptoms of a bacterial infection. The solution for an infection would be…

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…