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Two possible counter arguments: 1) The people who do the math are too busy read these articles and books. 2) Amazon has 15 phd economists running a single str
by a123b456c 5y ago
Two possible counter arguments:
1) The people who do the math are too busy read these articles and books.
2) Amazon has 15 phd economists running a single structural model of consumer behavior. They use it to inform feature changes.
- deleted 5y ago[deleted]
- jmeister 5y ago2 only amplifies Caplan’s broader point about the importance of corrective feedback mechanisms(from real or prediction markets or anywhere else). I remember my manager in finance telling me that he would readily use a “mickey-mouse-in-a-box” as a model if it made him money.
- HPsquared 5y agoApplying results from social sciences has the problem of weighing costs and benefits (policy X helps with A but hurts B). But how much 'A' do you need to get to outweigh the loss in 'B'? Business decisions are far simpler: both sides of a decision can be analytically boiled down to the same units (dollars/cents) and compared (more money = better than).