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behavioral economics

Guest Post: I Get So Emotional, Baby

By Energy Rant One Comment
Sorry, it’s not Whitney Houston, or Jeff Ihnen, writing this week’s Rant. It’s Kristin Laursen filling in while Jeff puts his feet up, sips martinis, and listens to 90s love songs (at least two of the three of those are true). Last week in Jeff’s Rant, he told us that consumers rule and drive everything, and that we’re “notoriously bad at math and buy for emotional and other reasons.” I can personally attest to the bad at math part, but the buying based on emotions can be explained through behavioral economics. Behavioral economics gives us insight into human behavior to…
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Behavioral Economics, Deep Thoughts of the Irrational Mind

By Energy Rant No Comments
I promised two weeks ago that I would discuss the results of our survey concerning behavioral economics this week. Delivered. Why explain something when you can just find it on the pure, and always correct, internet. Behavioral economics is defined in the graphic below, courtesy Google search.It would be wonderful if everyone understood that nothing (nothing) comes without a cost, that the cost may be higher than one thinks, and certainly higher than the value of benefits. The following are two examples. Health Insurance and Care Everyone reading this has complained about healthcare between one thousand and one million times…
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Low Electricity Prices – Impacts and Longevity

By Energy Rant 2 Comments
As I’m sitting here reading about topics including electricity prices, electric cars, and utility innovation in Public Utilities Fortnightly, it occurs to me: why are so many organizations and companies in the utility industry named after Edison when the electric car company is named after Tesla? This makes no sense, whatsoever. Edison was the vehement direct current advocate, and Tesla was the alternating current advocate. They were fierce rivals. But the car uses Edison’s direct current, while the utilities, of course, produce and deliver Tesla’s alternating current. I can only conclude that Edison was a better marketer, but I’ll bet…
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Behavioral Economics; A Quiz

By Energy Rant One Comment
Expressions Hair Design versus Schneiderman. That may sound like a softball or bowling league matchup, but it is actually a Supreme Court case that was heard last week. How in the world does this relate to energy efficiency? It is a case of behavioral economics and the Constitution, believe it or not. Energy efficiency has everything to do with behavioral economics, or maybe it’s the other way around. Behavioral Economics Behavioral economics posits that emotional bias leads to poor economic decisions. Did someone say electric car? I couldn’t resist. There is no doubt about it. People make poor economic choices…
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