Tag: Psychology

OK, it isn’t really. But an event at City Hall today threw up some difficult lessons for economists from other academic disciplines. After a massive crisis in the global financial system, which was triggered by and hugely deepened a cyclical recession, it’s a pretty easy time to have a dig. So here they go! Paul Ormerod kicked off with lessons from physics. The big one was: use empirical evidence and discovery to test, falsify and improve theories. In economics, evidence has very little status whilst most theory is developed in ignorance of evidence. His pet example was the work done on networks and effects such as herding (e.g. fashions and fads), which has barely scratched the surface of classical economic theory. Luc Bovens gave a fascinating dissection of the financial crisis using Aristotle’s Nicomachean ethics. Who is morally culpable for the crisis, he asked? In the tradition of all good…

Read More Why is economics a load of rubbish?

Here’s another reason not to try and terrify people out of conspicuous consumption, aside from the basic flaws in the “eco angel” approach and recent evidence that moralising is putting people off ethical consumerism. Some interesting research by Swiss psychologists found that warnings about death has the ironic effect of making some smokers want to smoke even more! The reason? They derive a self-esteem boost from smoking; warnings about death sent these smokers to a trusty source of self esteem to overcome that downhearted feeling – death-bringing cigarettes! So next time you tell someone that buying too much crap might cause planetary collapse, it’s fairly likely that your nasty nagging well send them running for a standard Western self-esteem boost: shopping.

Read More Might eco-nagging encourage more shopping?