Economic models explain human behavior only to the degree that the underlying assumptions of the model are fulfilled. Consumer theory of rational choice has been applied to a wide array of situations. This paper examines the results of the model when a consumer considers bundles of goods, some of which may affect her self image. Under these conditions, wrong decisions are not easily corrected, but can more easily be reversed if the individual is able to forgive herself for having made the wrong decision.
Since the publication of Axel Leijonhufvud's classic “Life among the Econ,” anthropological interest in the species Econ has waned. Unfortunately, one of the omissions from his analysis was a study of life among the tribes to which the unsuccessful grads were exiled. This article looks at the ritual of expulsion from the perspective of the outcast tribes ( subecon) into which the new outcasts seek asylum. The ritual of accepting these new subecon into a new tribe spurs a long and mysterious process in which the basic tenet of the Econ rationality is replaced with what can only be likened to the pon farr and koon ut kal if ee of the Vulcan mating ritual. JEL Classification: A11, A13
Traditional indifference curve theory is limited to explaining consumer choice between two goods or groups of goods; however, in the latter case the groups are seldom well-defined or relevant. The current article evaluates consumer adjustment between two relevant, well-defined groups of commodities, one denominated in U.S. dollars, the other in Deutsch marks. Changes in currency exchange rates and resultant changes in consumer behavior are easily analyzed using traditional indifference curve analysis. Additionally, compensation schemes customarily used to offset fluctuations are shown not to be welfare neutral.
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