I had the privilege to attend Prof. Sanjay Bakshi’s Behavioral Economics course at FLAME University. Being his student since 2011, I realized my dream by sitting in his class for 3.5 days. Prof. Bakshi taught us around 20 different models from Charlie Munger’s Psychology of Human Misjudgement. His presentation included examples from multiple disciplines including…
Game theory is the science of strategy. It attempts to determine mathematically and logically the actions that players should take to secure the best outcomes for themselves in a wide array of games. Prisoner’s Dilemma is the oldest and most studied model in game theory. In the book Game Theory 101 – William Spaniel gives the following…
Last week I went out to eat pizza with my elder son. We ordered a large pizza and it had 8 slices. I was paying close attention to him as he was enjoying each slice. He consumed the first slice with extreme joy. I gave a value of 100 for the joy he had from…
Marginal means additional. Seth Godin in his recent blog post defines marginal cost as The cost of the next item produced is called ‘marginal cost‘. It doesn’t include set-up fees, rent, years of training, insurance or all the other huge costs an organization might pay. It’s merely the cost of one more unit. Here is…
The population clock shows that the world has 7.1 billion people. Let us imagine that this population is divided into families of 4 member each. We will have around 1.77 billion families. How nice it would be if all the families have a own house, a ferrari car, and have their kids study in Ivy league…
Seeking Wisdom 