Sublime

36-inch Panasonic for $690, a 42-inch Toshiba for $850, and a 50-inch Philips for $1,480. Faced with these choices, most people choose the middle option, the $850 Toshiba. The cheapest and most expensive items are road signs funneling us to the middle option. In this case, relativity doesn’t compel us to compare one specific product to another; rat

To teach the difference between strategy and tactics to her students, Tina Seelig, the faculty director of the Stanford Technology Ventures Program, uses what she calls the five-dollar challenge.35 Students break up into teams, and each team gets five dollars in funding. Their goal is to make as much money as possible within two hours and then give

Max Levchin, my co-founder at PayPal, says that startups should make their early staff as personally similar as possible.

Fairness is a function of effort and effort is shown through transparency.

Economics 101 teaches that trading is rational only when it makes both parties better off. A baseball team with two good shortstops but no pitching trades one of them to a team with plenty of good arms but a shortstop who’s batting .190. Or an investor who is getting ready to retire cashes out her stocks and trades them to another investor who is j

Kahneman et al. presented 867 jury-eligible subjects with descriptions of legal cases (e.g., a child whose clothes caught on fire) and asked them to either Rate the outrageousness of the defendant’s actions, on a bounded scale, Rate the degree to which the defendant should be punished, on a bounded scale, or Assign a dollar value to punitive damage