1) The equity premium puzzle refers to the outperformance of stocks versus bonds over the last hundred years. An economist proposes an equivalent in the NFL. The passing premium puzzle, where teams look for a balanced offensive attack when the return to a pass is larger than that of a run. Hat tip: The Frontal Cortex.
2) Daniel Kahneman at TED. “‘Happiness levels increase up to the $60K mark, but “above that it’s a flat line,’ (Kahneman) says. ‘Money does not buy you experiential happiness but lack of money certainly buys you misery’…But the real trick, Kahneman said, is to spend time with people you like.”
To Kanheman, happiness does not mean life satisfaction as it does to some other happiness researchers.
3) Are medicine spoons the new dinner plates? Hat tip: Tristan Cooke.
4) Expiration date labels don’t seem to mean anything.
Nudge blog 
October 11, 2010 at 5:13 pm |
There is no passing premium puzzle. It’s a game with a mixed strategy solution. If offenses only passed, then defenses would only play passing defense; in turn reducing the return to passing. If defenses play only pass defense then there is a high return to running (assuming a skilled running offense). Both sides need a mixed strategy to maximize their expected returns.