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To: Gemlaoshi who wrote (8091)	9/2/2001 6:36:41 PM
From: Ilaine	Read Replies (2) \| Respond to of 74559

What are the differences between abstract logic and linear logic? I don't think I've heard of those before. The only forms of logic I am familiar with are Aristotelian and Boolean (and symbolic, but I think that's Boolean). But after doing a google search I see people talking about them, I'm just not sure what they are. BTW, speaking of irrational actions, Aristotle's "Rhetoric" is a lot of fun if you like logic. He explains how to use logical fallacies to win lawsuits. In democratic Athens, people in trouble with the law or having other kinds of problems presented their "case" to whoever happened to be listening in the agora, who would vote afterwards. Aristotle explained that pure logic and reason were not nearly as persuasive as emotion, and that using only logic and reason was a good way to lose your case.

To: Gemlaoshi who wrote (8091)	9/3/2001 9:25:55 PM
From: Don Lloyd	Respond to of 74559

Dave - ...relatively new fields of "behavioral economics" and "behavioral finance." ... amazon.com The Winner's Curse by Richard H. Thaler "Editorial Reviews Book Description Richard Thaler challenges the received economic wisdom by revealing many of the paradoxes that abound even in the most painstakingly constructed transactions. He presents literate, challenging, and often funny examples of such anomalies as why the winners at auctions are often the real losers--they pay too much and suffer the "winner's curse"--why gamblers bet on long shots at the end of a losing day, why shoppers will save on one appliance only to pass up the identical savings on another, and why sports fans who wouldn't pay more than $200 for a Super Bowl ticket wouldn't sell one they own for less than $400. He also demonstrates that markets do not always operate with the traplike efficiency we impute to them. ..." The Super Bowl ticket example is covered on page 4 of Thaler's Introduction. The appliance example, from memory, is that someone is willing to go across town to save $5 on a $25 radio, but not to save $5 on a $200 television. Do you happen to know where to find the appliance example? I've searched through the book more than once without finding it. I'm wondering if it was removed from an early edition. In any case, while it's likely that there is much of value in 'behavioral' studies, many of the 'anomalies' found, including the two above, seem to be more the result of the ingrained economic fallacies of the authors, than of strange 'behaviors'. Regards, Don