155 sats \ 0 replies \ @nout 21 Mar 2022 \ on: What I learned at the School of Economics bitcoin
Great article! I connected the concepts with links to wikipedia (Wikipedia is actually a decent source for economics, math, physics and similar...):
- Value is subjective - why someone can earn huge money and others don’t
- Opportunity cost - teaches you to say no
- Comparative advantage - why absolutely everyone in the world can be useful
- How money works and what it's for - why we need Bitcoin
- Transaction costs - why the world sometimes seems not to work according to economic laws, when in reality it does
- Sunk costs - what you can ignore when making decisions
- Pareto optimum vs Nash equilibrium and the impact of repeated play - useful for negotiation and for estimating the evolution of social situations
- Schelling point (Focal point) - how to reach an agreement without communication
- Time preferences
- Economies of scale
- Price discrimination is good
- Peltzman effect - why protective regulation also harms
- Firms want to be regulated
- Cantillon effect
- Gresham's Law
- Law of diminishing marginal utility
- Relationships between different variables - supply & demand
- Hotelling's lemma - why, for example, in small towns you often have different retail stores right next to each other
- Distinguishing between variable and fixed costs
The one that doesn't have english source
- Barton's lemma - why some things don't make sense
And from my classes of economics (long time ago; back when byte had 3 bits, 4 at most...) I also remember:
- Price's law shows how small number of people produce majority of things (when things are countable starting at 0)
- Complementary and Substitute