What’s the Biggest Difference Between Behavioral Economics and Causal Economics in Marketing?

Behavioral Economics provides a set of powerful and specific types of irrationality that marketers should consider each time they consider customer/prospect engagement. Other articles here lay out many examples. We highly recommend that a BE audit (BEMA) be conducted around each and every communication, to ensure that all relevant insights of BE are leveraged. We

Dangerous Nudges

Nudging is all the rage. Many countries now even have their own nudging units. Nudging can potentially play a role in good policy toward desirable ends, given our innate irrationality. However it is vital that people still have the freedom to make irrational decisions. Unfortunately, amid all the buzz, nudging is out of the gate

A Very Simple Economic Freedom Index

Many of the predictions of Causal Economics center on the impact of consolidated power, because that is one of the main conditions that allows for decoupling, driving up B/C ratios for those with power and driving down B/C ratios for those without power. Economic freedom and economic consolidation are at opposite ends of the spectrum.

Compensation Insights from Causal Economics

Causal Economics provides a great deal of insight on compensation practices. It reinforces some well recognized practices, flags some areas of poor approaches and lays out potential new approaches. This post puts a few areas on the table for discussion. Good compensation systems always try to connect pay (the cost to the employer and the

Is Growth and Deflation Possible?

It’s commonplace to see increasing real GDP as a measure of improved utility in society. But it’s less common to imagine an even better scenario of increasing real GDP and deflation. In such a situation, real incomes are increasing in a strong and sustainable fashion, as we’ll show here. The word ‘deflation’ itself conjures up