Free Lunch

Cover Free Lunch
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Meet Mr and Mrs Rational – economic man and economic woman. They are not a bad couple, even if everything they do can be a bit predictable. I shall come on to them in a moment but let me just set out the aim of this main course. It is easy to get the idea that economics is about the billions of dollars flowing around the world’s financial markets, or about whether the Chancellor increases public spending or taxes by a billion pounds or two, but human behaviour is at the heart of it. The aim, the...n, is to start with the behaviour of economic man and woman and try to build up from that to a picture of how the economy as a whole works. If that sounds a bit daunting, let me assure you it will not be. We will just start at the bottom and work our way up. Time to tuck in.
Behaving economically   Many people have trouble with the idea that human behaviour is predictable. Surely, most will say, it is inherently unpredictable. Economic man or woman may be acceptable in the textbooks but do they really exist in real life?


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