ECN 340 Chapter Notes - Chapter 1: Minnie Mouse, Occupational Hazard
16 Apr 2017
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Chapter 1: introducing the logic of life: the economics of sex, crime, & minnie mouse. Everyone is rational, very person does implicitly a cost benefit analysis. Try to maximize satisfaction, within the constraints they have. The economics of sex (something on exam about behave. ecs) Behavioural economists do not believe that people are always rational. Provide plenty of proof of so called irrationality . The proof usually comes when experimenters show that their subjects have made inconsistent choices. In the u. s. , the juvenile system is more lenient than the adult system but by a differing amount across states. Throughout the 1980s & the early 1990s, the juvenile system became less harsh relative to the adult system across america. Levitt found that in states where the adult courts were notably more sever than the juvenile courts, the difference in behavior was very sharp: crime dropped dramatically once the kids reached the age of majority.
