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...Once we've got our card in hand, our behavior becomes riddled with irrationalities. In one experiment, Drazen Prelec and Duncan Simester of the Massachusetts Institute of Technology found that people were willing to pay twice as much for basketball tickets when they were using a credit card as opposed to paying cash. Credit-card spending just doesn't feel like real money. In another study, Nicholas Souleles of the University of Pennsylvania and David Gross of the consultancy Compass Lexecon calculated that the typical consumer unnecessarily spends $200 a year in interest payments by keeping a sizable stash...

Author: /time Magazine | Title: The Real Problem with Credit Cards: The Cardholders | 5/12/2009 | See Source »

...credit for his brief stint in the Meadowlands swamp. Daly turned the Nets into legitimate Eastern Conference title contenders until John Starks of the New York Knicks broke the wrist of Nets point guard Kenny Anderson during the 1993 season. Then the team's scoring machine, Croatian shooting guard Drazen Petrovic, died in a car accident that summer. Daly left the Nets in 1994, and coached the Orlando Magic for two seasons in the late 1990s before leaving the sidelines, weary from the travel, but already in the Hall of Fame...

Author: /time Magazine | Title: Basketball Legend Chuck Daly (1930-2009) | 5/11/2009 | See Source »

...Symposium on Economic Decision Making”—focused on the nascent field of neuroeconomics, a combination of neuroscience, psychology, and economics that challenges classical assumptions of economic theory. “Economics is actually an abstract, profoundly wrong model of human behavior,” said Drazen Prelec ’78, a professor of management science at MIT, later redeeming the postulates behind economics by saying that “without those false assumptions, we could not have been making the progress we have been making.” Others voiced similar criticisms of economics. Harvard...

Author: By Naveen N. Srivatsa, CONTRIBUTING WRITER | Title: Event Tackles Decision Making Theory | 3/18/2009 | See Source »

...them. If so, how useful is that information? Again, many doctors say it's still far too early to gauge its benefit, because consumers are not capable of interpreting their genetic information or making any meaningful changes in lifestyle or health based on it. In January, Dr. Jeffrey Drazen, editor of the New England Journal of Medicine, co-authored a commentary questioning the tests' value as well as their clinical validity. "We don't think this is ready for common people to use it. Most of the time, it doesn't help you very much, because there isn't much...

Author: /time Magazine | Title: Should Genetic Tests Be Regulated? | 7/22/2008 | See Source »

...field of behavioral economics (in particular two amazing researchers: George Loewenstein, and Drazen Prelec) has rather convincingly shown that money given in different forms can have fundamentally different effects. For example, imagine that you have just finished a delicious dinner for two and it is time to pay the $100 bill. You open your wallet and are faced with your options: cash or credit? The reality is that no matter which option you choose, you will pay the same amount. But paying with a credit card feels very different than paying with cash—it is somewhat less painful...

Author: By Dan Ariely | Title: Irrational Economic Policies | 6/2/2008 | See Source »

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