Knowing and Making

Me, very briefly, on BBC Radio 4's Moneybox ( http://www.bbc.co.uk/programmes/b006qjnv ). My bit is around 16:20, but do listen to the whole report by Ruth Alexander from 13:10 or so. The subject: the psychology of pound shops... I hadn't seen the Neurokuz blog before - Marginal Revolution links to a summary of an experiment on extrinsic versus intrinsic rewards. I'm rarely convinced that there's much to learn from neuroeconomic experiments, but this does show that by focusing purely on the single dimension of reward (presumably dopamine?) we can make cognitive or mind-level distinctions between people who outwardly behave the same. What does the price of a pint say about a pub ?

Tyler Cowen was prompted by a reader question to offer his ten most influential books . He challenged other bloggers to do the same, so here are mine (as for Tyler, this is my "gut list" though informed by a pleasant half hour looking through my bookshelves to prompt my memory). It surprises me how few economics books are here - but then I didn't do much formal economics study at the time of life that one chooses influential books: Easily at the top of the list is Douglas Hofstadter, Gödel, Escher, Bach - An Eternal Golden Braid . The first book that started me exploring the mysteries of cognition and consciousness - and a book of such beauty, grace and depth that my life's work would be complete if I could write anything like it. Most of his other books are excellent too. Christopher Alexander,  A Pattern Language . Gives another insight into where abstract patterns can be found in the world - this time in the architecture of cities, buildings and rooms. Steve McC...

Happy birthday to Tyler Cowen, prime mover behind the Marginal Revolution blog (sorry Alex, but you just don't post as often). In honour of Tyler and MR, clearly the emperor of economics blogs, here are a few recent pages which I discovered via his targeted link-collecting. Unlike Tyler I think this research gets to the heart of exactly why music works psychologically. I don't know the UCL or Goldsmiths people involved, but will try and find out if they work with my friends from the Judgment and Decision Making seminar. He also links to an interesting post from okcupid , a site I am (ahem) familiar with. And this fascinating if tenuous link about number sounds, from the Barking Up the Wrong Tree blog which I hadn't seen before, also comes via him. Finally, you can't go far wrong by picking and reading a random article from MR and thinking through the conclusions (though Tyler has usually done that for you too, which is a pretty efficient use of scarce cogni...

Tyler at Marginal Revolution has an excellently succinct summary of how politics works in healthcare : ...one needs to signal a more extreme symbolic affirmation with the proper "showing that you care" values than what the other side is doing... This statement is so perfectly borne out by the UK experience since 1997 that there is a kind of beauty to how true it is. Talking of healthcare, the US plan should become a lot cheaper if this trend continues: placebos are becoming more effective. On current trends placebo should be more effective than all current drugs by 2011; by 2013 sugar pills will overtake some common forms of surgery and in 2016, it should no longer be necessary to use Band-Aids or brush your teeth. Fortunately the US does still have some indirect price supports on sugar, or else the pharmaceutical companies would have no way to make profits at all. Derek Thompson asks whether the Sahara could power Europe . It's even better than that: I estimated this w...

Tyler Cowen challenged progressives to come up with an intelligent defence of libertarianism. While I might not be considered especially progressive by European standards, I probably am on the American spectrum. I thought that a view from a European might be interesting given that he makes several comparisons between the two continents in his list. Incidentally, I think his list is not a bad summary of the progressive position, though I'd disagree with 3 and the second part of 8. Maybe those points are where I am revealing my libertarian bits. Here's my attempt to return the favour: As a matter of principle, freedom is both a good in itself and a bulwark against damaging authoritarianism. In general, each individual knows more than anyone else about their own interests and the context they live in, and by making their own choices they are best able to maximise those interests. Indeed, the only way we can get any genuine insight into someone else’s interests is by observing the...

I am looking forward to Tyler Cowen's new book, Create Your Own Economy , which sounds like a thought-provoking and very unusual approach to economics. But I didn't really want to pay US shipping fees or wait several days, so I clicked over to the UK version of Amazon to see its entry there . I was surprised to see that on the UK edition, he has acquired a new editor and illustrator...with very strange names: But I guess people have all sorts of odd names nowadays. So I thought I'd scroll down and find out a bit more about what the book covers. I'm afraid, however, that it may be a little too avant-garde for me. The product description is in some rather odd style of free verse. I am sure the book will be exciting but it's going to be tough going if this is any guide: