Why We Like Lotteries

We can ask why our lottery ticket spending has been $70 billion annually when we have such an infinitesimal chance of winning.

Weekly Roundup: From Fed Humor to the Wisdom of Warren Buffett

Our Posts Roundup Sunday 3.01.15 Handy notes from Warren Buffett…more Monday 3.02.15 The basics of Greek tax evasion…more Tuesday 3.03.15 Insight about airline queues…more Wednesday 3.04.15 Why we subsidize Brazilian farmers…more Thursday 3.05.15 What an ATM can teach us…more  …

What We Can Learn From Warren Buffett

His 50th anniversary, Warren Buffett’s letter to his shareholders again conveys what he did right, what he did wrong and his folksy investing advice.

Our Weekly Roundup: From Being Cool to Being a Wise Investor

This week’s everyday economics stories included spillover, externalities, incentive, opportunity cost, sovereign debt, demand and financial intermediaries.

Some Warren Buffett Investing Wisdom

Guilty of probability neglect, we should listen to Warren Buffett’s advice on investing and use cost/benefit analysis whenever emotions overwhelm logic.

Fiscal Policy: Looking at the Lottery

The 14 million (or so) people who buy Powerball lottery tickets may be suffering from probability neglect. They know that their chance of winning $40 million could be 1 in 175 million. But still, they buy the tickets. Nobel prize winning…