Sublime

It traditionally assumed that firms were independent, and so changes would be independent, and so their sizes and aggregate effects would be distributed normally.

Condition II: Courts may effectively produce significant social reform when other actors impose costs to induce compliance.

We favor the policy of prompted choice because there is no evidence that a viable alternative system would save more lives (and hence is superior in terms of the interests of Patients), and because we think it does the best job of respecting the rights and interests of Potential Donors and Families.

“compensatory” strategy, since a high value for one attribute (big office) can compensate for a low value for another (loud neighbor).

His idea was straightforward: people’s choices are based not on dollar values but on the psychological values of outcomes, their utilities.

The point of agency theory is that with the right measurements and incentives, many of the problems entailed in aligning otherwise conflicting interests can be solved.

the other major workhorse of economic theory, that of equilibrium.

did this by introducing a discounting factor into his recursive definition.