Irrational Mental Accounting
There are certain aspects of economic life, such as expensive hotel internet connections, which can only be explained when we grapple with the bounded nature of our brain.
Contradictory decisions violate an important principle of classical economics, which assumes that a dollar is always a dollar. (Money is supposed to be perfectly fungible). But because the brain engages in mental accounting, we end up treating our dollars very differently. For example, when an experiment asked people whether they would drive 20 minutes out of their way to save $5 on a $15 calculator, 68 percent of respondents said yes. However, when he asked people whether they would drive 20 minutes out of their way to save $5 on a $125 leather jacket, only 29 percent said they would.
We are constantly trying to force the world to look like us — we need to move on.
- When the Berlin Wall fell in 1989, many Americans jumped for joy. At the time, some believed there weren't going to be any more political disagreements anywhere in the world. They thought American democracy had won the "war of ideas."
- American exceptionalism has sought to create a world order that's really a mirror image of ourselves — a liberal world order founded on the DNA of American thinking. To many abroad this looks like ethnic chauvinism.
- We need to move on from this way of thinking, and consider that sometimes "problem-solving," in global affairs, means the world makes us look like how it wants to be.
Scientists make an important discovery for the future of computing.
- Researchers find a new state of matter called "topological superconductivity".
- The state can lead to important advancements in quantum computing.
- Utilizing special particles that emerge during this state can lead to error-free data storage and blazing calculation speed.
French newspapers report that the trial hasn't lived up to expectations.
- The French government initially invested in a rural solar roadway in 2016.
- French newspapers report that the trial hasn't lived up to expectations.
- Solar panel "paved" roadways are proving to be inefficient and too expensive.