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Not a research on such behaviour but more an application to macroeconomics : https://en.wikipedia.org/wiki/Capitol_Hill_Babysitting_Co-op https://en.wikipedia.o
by toto444 5y ago
Not a research on such behaviour but more an application to macroeconomics : https://en.wikipedia.org/wiki/Capitol_Hill_Babysitting_Co-op https://en.wikipedia.org/wiki/Capitol_Hill_Babysitting_Co-op
It illustrates :
> the paradox states that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will in turn lower total saving. The paradox is, narrowly speaking, that total saving may fall because of individuals' attempts to increase their saving, and, broadly speaking, that increase in saving may be harmful to an economy.
- atq2119 5y agoThis is the fallacy of composition applied to aggregate demand. That's important to know about, but what others were talking about is the psychology of individual choices. There isn't any aggregation or composition happening there as far as I can see.