if, judging by looking at some economical numbers, poverty already doesn’t exist for centuries, why do we feel so poor; or perhaps, why do we act as if we are poor
Some years back (or perhaps a couple/few decades) Verner Smith was running some experimental economics, I believe with econ student, which were producing some odd or difficult to explain results. Durnig the game play it was nearly universal that players would accept an absolutely lower payout than accept the higher payout option when the other play would then get most of the gains. From a rational actor perspective that seemed to be the same as people refusing to pick up the $5 bill on the ground. Even worse perhaps because at least one of the players, if not both, had to be actively throwing it on the ground.
Jame Buchanan sugested that perhaps absoulte resulter were in fact not the key criteria but the relative outcomes. Makes sense in many ways from an econcomic perspective where pretty much everthing, for instance prices, is relative and not based on absolute levels.
I don’t think that would explain poverty, or the sense of povery, entirely but do think it probably has something to do with it. At least in terms of the question posed above.
Some years back (or perhaps a couple/few decades) Verner Smith was running some experimental economics, I believe with econ student, which were producing some odd or difficult to explain results. Durnig the game play it was nearly universal that players would accept an absolutely lower payout than accept the higher payout option when the other play would then get most of the gains. From a rational actor perspective that seemed to be the same as people refusing to pick up the $5 bill on the ground. Even worse perhaps because at least one of the players, if not both, had to be actively throwing it on the ground.
Jame Buchanan sugested that perhaps absoulte resulter were in fact not the key criteria but the relative outcomes. Makes sense in many ways from an econcomic perspective where pretty much everthing, for instance prices, is relative and not based on absolute levels.
I don’t think that would explain poverty, or the sense of povery, entirely but do think it probably has something to do with it. At least in terms of the question posed above.