Why Economists are often Cheapskates(online.wsj.com)
online.wsj.com
Why Economists are often Cheapskates
http://online.wsj.com/article_email/SB126238854939012923-lMyQjAxMTIwNjAyMzMwODM4Wj.html
9 comments
There's probably something to that. I do wonder whether for economists look at something like Walmart and see them doing more social good by making goods more affordable than XYZ charity (and arguably they do). I think when most of us think of "social good" we tend to idealize not for profits more than for profits, but there shouldn't be any reason why profitability doesn't equate to social good - in fact, arguably it does given that revenues by definition require that people want a service/product enough to pay for it.
Is it bad to give friends 150$ to hire movers, instead of helping by oneself? I was actually planning to do the same thing on the next occasion. Since I am over 30 now, it probably is a lot cheaper too - not only in terms of my hourly wage, but also if I multiply the odds of getting a lumbago with the costs of treating it.
I know moving is supposed to be the occasion where true friends are revealed, but doesn't it make too much sense to simply pay? Also, maybe true friends wouldn't ask their friends to help moving, if they could afford to hire movers?
As for charities, I admit I also have problems to donate or "invest fairly": it seems a "fair price" is probably the market price, to investing fairly seems alien indeed. At least unless there is more information (I don't want to support exploitation). As for charities, I am also often not sure how much good they will really do - I am much more interested in changing the underlying causes.
I know moving is supposed to be the occasion where true friends are revealed, but doesn't it make too much sense to simply pay? Also, maybe true friends wouldn't ask their friends to help moving, if they could afford to hire movers?
As for charities, I admit I also have problems to donate or "invest fairly": it seems a "fair price" is probably the market price, to investing fairly seems alien indeed. At least unless there is more information (I don't want to support exploitation). As for charities, I am also often not sure how much good they will really do - I am much more interested in changing the underlying causes.
I have a close friend who studied Economics. He always said he wasn't cheap, just "opportunity cost aware."
A nice piece of entertainment, but there's a lot of contradictory motivation behind the actions of these economists. For example, some of them would rather pay movers to save a few hours of work. Another will drive half an hour out of his way to save $5. Similarly many of the quirks listed in this article are just personality quirks which are perhaps associated with wanting to become an economist, but which are not likely because of it.
This piece is entertainment not meant to inform, which is fine, but we need to read it that way.
This piece is entertainment not meant to inform, which is fine, but we need to read it that way.
Saving a few hours of time in exchange for $150 vs saving $5 in exchange for an hour (round-trip) of your time may be the right choice for the same person.
Moving is strenuous, boring physical labor with a relatively high probability of being hurt/sore the next day. Driving around for an extra hour may be a pleasant diversion, time alone to think, relax, listen to music, etc. It's not apples to apples paying $50 an hour in one case against being paid $5 an hour in the other case.
Moving is strenuous, boring physical labor with a relatively high probability of being hurt/sore the next day. Driving around for an extra hour may be a pleasant diversion, time alone to think, relax, listen to music, etc. It's not apples to apples paying $50 an hour in one case against being paid $5 an hour in the other case.
I'm guessing as a collective the HN community might be even more frugal than a grab bag of economists, and it was computer science minds that hacked casinos for far more by researching card counting. :P
Btw, casinos are getting wise to the trick of placing anti-correlated bets using match-play coupons. When I was last at Atlantic City, the matchplay coupon was only good for bets on Red for roulette and Pass for craps, so that you couldn't pair up with someone betting on Black and Don't Pass.
Btw, casinos are getting wise to the trick of placing anti-correlated bets using match-play coupons. When I was last at Atlantic City, the matchplay coupon was only good for bets on Red for roulette and Pass for craps, so that you couldn't pair up with someone betting on Black and Don't Pass.
The surely you could just bet your own money on black and get 50% of the leverage?
Economist Robert Gordon, of Northwestern University, says he drives out of his way to go to a grocery store where prices are cheaper than at the nearby Whole Foods, even though it takes him an extra half hour to save no more than $5.
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And the principles that can make economists seem cheap sometimes lead them to hire help, because they are taught to value their own time.
Hmmm.
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And the principles that can make economists seem cheap sometimes lead them to hire help, because they are taught to value their own time.
Hmmm.
To mangle Oscar Wilde, economists know the price of everything and the value of nothing. An exaggeration but not by much.
Not sure I agree with that point. I admire those who are able to consistently separate emotions from decision making - and that's what I think economics training does for individuals when it comes to money and time. Of course, it can be taken to extremes and what may seen logical and rational on its face may not ultimately be viable/optimal especially when you take into account the emotions and reactions of others.
Correct me if I'm wrong, but I think by "value" he didn't just mean sentimental value.
Getting a Rolex because you found it for $5 is a value, getting a Fossil because you found it for $5 is cheap.
Getting a Rolex because you found it for $5 is a value, getting a Fossil because you found it for $5 is cheap.
> One year, Yale University economist Robert Shiller, who'd never gambled in his life, found himself at a casino there. He says that was because Wharton economist Jeremy Siegel realized that by using coupons offered to conventioneers, they could take opposing bets at the craps table with a 35 out of 36 chance of winning $12.50 each. Over two nights, Mr. Shiller netted $87.50.
Too bad the article never really answered the question.
What would happen if we measured charity in terms of lives saved? As PG has mentioned, things which you measure tend to improve[2]. I would rather improve charity outcomes than inputs.
Economists sometimes claim that most charities are very inefficient[3]. Maybe economists give to more efficient charities, so their dismal charity record might look better when measured in lives saved rather than dollars donated. (If this seems like a weak apology for the lack of charity of economists, I agree. It is sad that a disproportionately high fraction of economists give nothing at all to charity.)
[1] e.g. http://www.mint.com/blog/trends/charity-who-cares/
[2] Point 7 of Startups in 13 Sentences: http://www.paulgraham.com/13sentences.html
[3] http://blog.givewell.net/?p=480 and http://www.overcomingbias.com/2009/09/lost-charity.html