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Economics

In praise of the borrowed book

The cost is obvious, the benefit is diffuse, and so the benefit loses.

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Growth, measured and unmeasured. Photograph: The Unreasonable Human

Put a number on habit and it becomes a target; put a target on it and the number stops meaning what it meant. The textbook treats habit as a preference to be revealed. In practice it is a story we tell ourselves after the fact. The strange thing about the second helping is not that it exists but that it works, most of the time, for most people. None of this is new. Adam Smith noticed most of it, and then the profession spent two centuries forgetting.

Three kinds of mistake

We describe the departure from the model as an error. We might equally describe the model as a hopeful guess about us. A pattern this consistent is not a character flaw. It is a design feature, and design features can be worked with. Ask most people why they did what they did and they will give you a reason; ask them again a week later and the reason will have quietly changed. Understanding people turns out to be a more urgent task than changing them, and a great deal harder.

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Alina Petrova
Alina Petrova — Editor-in-chief

Alina Petrova is a Year 12 student preparing to apply to university, and the founder and editor of The Unreasonable Human. She reads across psychology, economics, behavioural science and neuroscience, and writes about the gap between how people are supposed to decide and how they actually do.

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