5Why Do We Give Golden Crumbs to Rich People?

image
61

What makes people fall for these high fees? It could be a certain well-documented chink in their good sense.

Classical economic theory makes a lot of assumptions about people’s actions when their economic interests are at stake. It assumes, for example, that people act “rationally.”

Some of these rationality assumptions seem a little out of keeping with common sense. At the very least, they are in a strange sort of jargon. For example, suppose someone decides to go to a three-hour baseball game for $20 instead of working overtime for $30 an hour. Economic theory assumes the psychic benefit of attending ...

Get The Big Investment Lie now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.