ECN 340 Lecture Notes - Lecture 5: John List, Opportunity Cost, Occupational Hazard
18 Apr 2016
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* behavioral economists have provided plenty of proof of so called irrationality . *the proof usually comes when experimenters show that their subjects have made inconsistent choices. *but we cannot extrapolate from the laboratory experiment unless we are con dent that the conditions of the experiment - which are necessarily contrived - resemble the kind of situations we face in real life. *john list has discovered something that had been hidden in plain sight: that whatever the merits. *in the us the juvenile system is more lenient than the adult system but by a different amount across the states. *throughout the 1980s and 1990s, juvie became less harsh. *levitt found that in the states where the adult courts were notably more severe than the juvie courts the difference in behavior was very sharp. *where the juvie courts were relatively harsh the drop didn"t happen, kids were already frightened.
