The Economically Irrational Things We Do
We've all heard this kind of story--when you poll people to ask whether they'd drive across town to buy a coat that's on sale for 100 dollars off, rather than buying it at the local store, where it isn't, they say, "You bet I would!" But would they drive across town to buy a Mercedes that's on sale for 100 dollars off? Nope. Makes no sense, but that's how people are.
I caught myself doing it last night--I took out cash from a machine that charges me four lira for the privilege when I could have walked three blocks to take it out from my bank's machine. I wouldn't even have minded the walk; it just didn't seem worth it for four lira. Then a five-lira T-shirt caught my eye. I thought it would be comfortable and I liked the color. But I couldn't pull the trigger--it just seemed like a spendthrift impulse purchase. Made no sense, but there you are.
What do you do that's economically irrational?
- Comment (33)
- · Quote
- · UnfollowFollow (4)
- Pages:
- 1
- 2
- Pages:
- 1
- 2
Comments :
Jul '10
Re: The Economically Irrational Things We Do
I know people who drive extra miles to save on the price of gas, when they could have broken even by purchasing it closer to home.
Jul '10
Re: The Economically Irrational Things We Do
Well, Claire, some folks might say that the $50,000 I've spent on my ancient bull terrier over her lifetime is irrational.
But she's been the joy of my life and proof - for one who sometimes needs reminding - of the Divine.
Only God could make a bull terrier.
Dec '10
Re: The Economically Irrational Things We Do
I build Hot Rods and Race Cars.
Very seldom does a man recoup the cost of the build when he inevitably sells it.
We essentially spend years of our lives building beautiful objects that we then turn around and sell at a loss.
If that ain't irrational, I don't know what is.
Don't even get me started on the economic irrationality of campaigning a short track stock car. Suffice to say that it's like having another 60 hr a week job that you have to pay to work at.
Aug '10
Re: The Economically Irrational Things We Do
Yeah. My Dad used to drive to another state to purchase gas...
You'd think an engineer would be sufficiently good at math to realize the folly of this. But for him, the outrage of getting "ripped off at the pump" where we live was so great that he'd rather waste the fuel -- and time -- that it took to drive across the state border (we weren't very close to the border).
On the other hand, it's possible that Dad just enjoyed the driving and wouldn't admit to himself that he did this for recreation.
Edited on Jan 20, 2011 at 3:13pmSep '10
Re: The Economically Irrational Things We Do
Its economically irrational to work, but I do it anyway.
Nov '10
Re: The Economically Irrational Things We Do
I give a stranger $3.47 a month so I can show other people how smart I am.
Jul '10
Re: The Economically Irrational Things We Do
CoolHand: I build Hot Rods and Race Cars.
Very seldom does a man recoup the cost of the build when he inevitably sells it.
We essentially spend years of our lives building beautiful objects that we then turn around and sell at a loss.
If that ain't irrational, I don't know what is.
Don't even get me started on the economic irrationality of campaigning a short track stock car. Suffice to say that it's like having another 60 hr a week job that you have to pay to work at. · Jan 20 at 2:58pm
CoolHand, your comment reminds me of what William F. Buckley, Jr. once said of racing across the Atlantic in his sailboat, "It's like standing in an ice-cold shower, tearing up hundred-dollar bills."
Kudos to you, by the way. Nice to know that some young people still know how to build stuff.
Aug '10
Re: The Economically Irrational Things We Do
Claire, are coats-vs-cars is such a good example?
I've never been involved in the purchase of a new car, only used, so maybe I'm missing something. But in my experience, purchasing a car always involves haggling -- beating the sticker price down by considerably more than just $100. Purchasing a coat does not. So maybe a $100 difference in the sticker price of a car doesn't make the same difference that a $100 difference in the price of a coat does?...
Aug '10
Re: The Economically Irrational Things We Do
As for me, the list of things I do that are "uneconomical" is so long I have a hard place knowing where to start.
Edited on Jan 20, 2011 at 4:08pmJul '10
Re: The Economically Irrational Things We Do
Midget Faded Rattlesnake
I've never been involved in the purchase of a new car, only used, so maybe I'm missing something. But in my experience, purchasing a car always involves haggling -- beating the sticker price down by considerably more than just $100.
Midge, one of my irrationalities is that I just can't bring myself to do hard haggling for a car. Having sold stuff myself under what's known as the "par system", I'm aware that the dealer tells the salesman the "par" price for the car. Every dollar above par goes to the salesman. if he goes below par, he gets maybe 50 bucks and probably loses his job.
So, I decide what options I want. We arrive at a price. And then I say to the guy, "Look, you know I have to get some kinda deal here, it's just the American way." I let him throw me a bone and then I say, "Deal. Now go home and feed your family."
Edited on Jan 20, 2011 at 3:26pmMay '10
Re: The Economically Irrational Things We Do
Nothing. I apply a cost/benefit analysis to every potential monetary exchange. I administer a probability calculus, identify the variables, examine the opportunity cost, perform the utility functions, and yield a probabilistic result.
Humans....
Dec '10
Re: The Economically Irrational Things We Do
Kenneth
Kudos to you, by the way. Nice to know that some young people still know how to build stuff.
Thank you. There aren't massive groups of young folks going into fabrication and machining, but there are quite a number of us out here.
When I started getting into artisan sheetmetal shaping a few years ago, I was very surprised to see so many guys my age and younger. Up until five or ten years ago, shaping body work on an english wheel or with a power hammer was basically a dead art. Now it is undergoing something of a resurgence, and it's nearly all thanks to young people desiring to learn a lost trade.
It doesn't help that for years we've been told that welding, fabricating, machining, autobody, etc are all "low" or "semi-skilled" jobs that only uneducated people work at.
I've got a college degree in Mining Engineering, and I can tell you that mastering the art of joining metal by welding is far and away harder than anything I did in school.
The same goes for shaping sheetmetal or learning how to use machine tools effectively.
I assure you, there is nothing "low or semi-skilled" about those trades.
Edited on Jan 20, 2011 at 3:31pmNov '10
Re: The Economically Irrational Things We Do
I tend to work on percentages, rather than dollar value. I don't know if that's a good thing or not (from an economic theory POV), but it seems to work.
Jul '10
Re: The Economically Irrational Things We Do
CoolHand
Kenneth
Kudos to you, by the way. Nice to know that some young people still know how to build stuff.
I've got a college degree in Mining Engineering, and I can tell you that mastering the art of joining metal by welding is far and away harder than anything I did in school.
The same goes for shaping sheetmetal or learning how to use machine tools effectively.
I assure you, there is nothing "low or semi-skilled" about those trades. · Jan 20 at 3:30pm
Edited on Jan 20 at 03:31 pm
My father, who never made it past 6th Grade, was a master at welding.
I've got a lot more respect for men who build economically-useful stuff than for, say, Paul Krugman.
May '10
Re: The Economically Irrational Things We Do
Bought a boat (a hole in the water into which one throws money).
Had kids.
Majored in English and history.
Each choice has qualities that redeem (well, except the third), but economically they made no sense.
Jul '10
Re: The Economically Irrational Things We Do
Kenneth My father, who never made it past 6th Grade, was a master at welding.
I've got a lot more respect for men who build economically-useful stuff than for, say, Paul Krugman. · Jan 20 at 3:39pm
I've got a lot more respect for 6th graders than Paul Krugman.
Jan '11
Re: The Economically Irrational Things We Do
Invest my money in municipal bonds
Jul '10
Re: The Economically Irrational Things We Do
Oh, it's worse than that. We're paying Ricochet to provide them with content.
As Samuel Johnson quipped, "No man but a blockhead ever wrote, except for money."
We're exploited here, I tell you. Exploited. And we're such blockheads that we love it.
Aug '10
Re: The Economically Irrational Things We Do
Michael Labeit
Nothing. I apply a cost/benefit analysis to every potential monetary exchange. I administer a probability calculus, identify the variables, examine the opportunity cost, perform the utility functions, and yield a probabilistic result.
Humans....
Supposing Mike's serious, he's pretty uneconomical. Rational ignorance.
Dec '10
Re: The Economically Irrational Things We Do
I might have to say smoking. At $6-$8 a pack it ends up being the worlds slowest and most expensive lethal injection...but oh so satisfying.