The Becker-Murphy Theory of Rational Addiction
Andrew Gelman writes:
Rational addiction: Ole Rogeberg sends in this:
and writes:
No idea if this is amusing to non-economists, but I tried my hand at the xtranormal-trend. It's an attempt to spoof the many standard "incantations" I've encountered over the years from economists who don't want to agree that rational addiction theory lacks justification for some of the claims it makes. More specifically, the claims that the theory can be used to conduct welfare analysis of alternative policies.
