16/07/2011

Resources Are Limited

Across a variety of disciplines, many researchers aim to show that subtle biases continue to exist. My reaction tends to be, yes, and the world is still round. It’s not merely a glass half-full versus half-empty difference. It’s a glass nearly to the brim, but upon very, very close inspection, we’ve determined that it’s fractionally below the rim, too close to see with the naked eye or even with typical magnification; but with a really high-powered lens we’ve discovered a measurable distance between the rim and the water level. As economists, we frequently assert and explain how zero is rarely the optimal amount of anything, even undesirable things like pollution. If the standard against which bias is to measured is zero, then I suppose we haven’t reached it

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