"Expectation" is way too broad a term that is used for all sorts of other things. Barkley Rosser ----- Original Message ----- From: "martin schiller" <mschiller at pobox.com> To: <lbo-talk at lbo-talk.org> Sent: Friday, June 13, 2003 3:49 PM Subject: Re: [lbo-talk] Economics drivel
> a msg from rosserjb at jmu.edu on 6/13/03 8:49 AM included ...
>
> > Well, the sort of thing you are talking about
> >here is known to behavioral economists, but it
> >has not really gotten an agreed upon label yet.
> >"Inertia" looks like the leading candidate, but
> >that is hardly at the level of use or acceptance
> >that "endowment effect" is. It is distinct from the
> >endowment effect, however.
> > Essentially it is an aspect of bounded rationality.
> >People like to continue with existing financial
> >arrangements unless they become strongly convinced
> >that there is a reason to change them. Lots and
> >lots of people in the US, and this includes supposedly
> >intelligent and well-educated people, have pension
> >arrangements that are simply stupid. However, they
> >have them because they were the default option at
> >their place of employment and they simply do not wish
> >to think about the issue. It is a "waste of their time,"
> >or a "nuisance to think about," it "makes my head ache."
>
> The behavior reminds me of the 'expectation' that we have of our
> government - that it will utilize the collective wisdom of the culture to
> exercise the most effective use of resources in obtaining the social
> necessities. And then tell us how to comply. (Economics?)
>
> Expectation (hope) might be more apt than inertia.
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