Economics Articles

Essays on topical issues, latest developments in UK and global economies, and answers to readers questions

Is it rational to put money in an honesty box?

Posted on June 23, 2017

Following on from yesterday’s post. Is it rational to pay £1 for a bottle of water? This photo was taken at Stanstead Airport. You could easily take a bottle without paying. No-one would notice at all. It’s not even clear it would be a crime. Therefore, is it rational to pay? One logic is to …


Rational economic man – Homo Economicus

Posted on June 22, 2017

Homo Economicus is a hypothetical concept that humans are: Self-interested Know what they want Make rational choices to maximise their utility. These choices are based on concept of marginal utility. This concept of a rational economic man is an important cornerstone of neo-classical economic theory. It creates a framework to model how consumers and firms …


Optimal name of companies and search engine positions

Posted on June 15, 2017

I saw this skip for hire and it made me nostalgic for a pre-internet era? Why. Before the internet, most people would order a skip by looking through the Yellow Pages (a telephone directory for companies – ordered by type of business. For something like ‘skip hire’ – It’s the kind of business where you …