ECN 340 Chapter Notes -Gonorrhea, Ryerson University, Daniel Kahneman
25 Oct 2013
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Document Summary
Teenage oral sex went up in america. 1994-2004 young people increased reports of oral sex. Are kids being smart?consuming more of something that is less expensive rather than something more costly, lower cost with oral sex. Economists claim: rational people respond to trade-offs and to incentives(and disincentives) when the costs of benefits of something changes, people change their behavior. Rational people think- not always consciously, about the future as well as the present as they try to anticipate likely consequences of their actions in an uncertain world. With this definition, the kids must be responding to incentives: to potential cost of oral sex must be lower than regular sex, thus they substitute as they switch to pepsi if the price of coco-cola rises. Reduced cost of hiv in oral intercourse. People are rational, leads to clear theories of the way world works, helps us to strip layers of complexity and guide us towards possible solution.
