5 ms·
Ego rents are very much a part of modern economic theory. As are any range of cognitive biases (see behavioral economics), institutional frictions, spatial cons
by Gimpei 5y ago
Ego rents are very much a part of modern economic theory. As are any range of cognitive biases (see behavioral economics), institutional frictions, spatial constraints, and on and on. It's a wide tent. Some say too wide.
- jvsg_ 5y agoCould you explain ego rent? Google didn't give me an answer (it sucks these days tbh).
- FooBarBizBazz 5y agoLike, you make no money but get to feel important. See the "CEOs" at startup conferences.
- jacknews 5y agoYes even with these additions, I don't think the central problem is addressed, which is that economics still treats people as 'rational actors', albeit flawed, interested in gaining wealth. But, and I see it all the time, people will in many cases, not only not work together for mutual gain, but will actually choose actions that harm their own material wellbeing, if they harm their close rivals more. People care about their relative status, not absolute wealth.