Category Archives: Principal-Agent Problems

Play stupid games, win stupid prizes

From the Australian Financial Review, 29-30 July – ‘Slow Connections’: When Stephen Sims hears one of his clients is getting the National Broadband Network installed, he sends them a wireless router and a 4G dongle. “The NBN connections have been … Continue reading

Posted in Critical Thinking, Decision-making, Epistemic Rationality, Esau Problem, Instrumental Rationality, Moral Hazard, Principal-Agent Problems, Prize for Myopia, Sunk Cost Fallacy | Leave a comment

An inability to learn

From a review of Lynne Olson’s Last Hope Island that I found in the Fin this weekend: In the early evening of March 6, 1942, Lauwers sat in an apartment in The Hague, waiting to begin his scheduled biweekly transmission … Continue reading

Posted in Decision-making, Mind-sets and Logic-Bubbles, Poor reasoning, Principal-Agent Problems, Problem Solving, Problems with perception intuition and judgement, Strat. Assumptions v. Tac. Indicators, Thinking Course, Uncategorized | Leave a comment

Narrative and Taboo

Trump’s backing away from the positions that got him elected continues apace: Trump frequently used the phrase “radical Islamic terror” on the campaign trail to describe Islamist extremists and militant groups, but the term has historically been avoided by presidents, including … Continue reading

Posted in Epistemic Rationality, Narrative and Taboo, Poor reasoning, Principal-Agent Problems, The Suicide of the West | Leave a comment

Verballing Paul Volcker

I was interested to learn of this publication, written by two of the lecturers under whom I studied at university (plus a third who is unknown to me). While occupying a place on the n-dimensional political spectrum which is the polar opposite … Continue reading

Posted in Moral Hazard, Motivated Reasoning, Principal-Agent Problems | 1 Comment

Cri de coeur

Inner Immigration (Résumé of a German woman) I am almost 50 years old, I have a University degree, and was – out of love for nature – always a trusted voter for the Green Party. I never felt much interest … Continue reading

Posted in Democracy and freedom of mind, Flotsam and Jetsam, Freedom of speech, Moral Hazard, Principal-Agent Problems, The Mind & Society | Leave a comment

Public Choice Theory Vindicated! … umm, again

The Principle-Agent Problem strikes again. Who’da thunk it?? “Most of my colleagues are dishonest career politicians who revel in the power and special-interest money that’s lavished upon them.” “My main job is to keep my job, to get reelected. It … Continue reading

Posted in Asymmetric Information, Esau Problem, Moral Hazard, Principal-Agent Problems | Leave a comment

How much more unreality can we bear?

No posting over the last five weeks as a result of trying to make sense of the financial developments that have occurred in that time, position myself 1) so as to avoid losses, and 2) if possible to enhance my savings; and … Continue reading

Posted in Epistemic Rationality, Mind-sets and Logic-Bubbles, Principal-Agent Problems, The Mind & Society | 1 Comment

You can rationalise anything

From Breitbart: An Iraqi migrant has admitted to raping a 10-year-old boy in a Viennese swimming pool so ferociously that the boy had to be hospitalised for his injuries. The man said he knew it was wrong but couldn’t help … Continue reading

Posted in Narrative and Taboo, Principal-Agent Problems, Rationalisation | Leave a comment

Narrative and Taboo, VII

One explanation for why people consent to live under the rule of law imposed by a central authority, and to pay taxes to that central authority, is that the central authority provides protection and the administration of justice, which individuals could not … Continue reading

Posted in Epistemic Rationality, Mind-sets and Logic-Bubbles, Principal-Agent Problems, Privileges Rents and Vested Interests, The Mind & Society | Leave a comment

Kidding yourselves, and hoping to kid others too

This being the ‘silly season’ here in the Southern Hemisphere, the national broadcaster, with most of its talent taking long vacations, is filling the airwaves with replays of old shows. One of which, a documentary about how the universities’ need for … Continue reading

Posted in Asymmetric Information, Moral Hazard, Principal-Agent Problems | Leave a comment