Thursday, September 13, 2012

The economics of watching TV

The irrationality of couch potatoes

The explanation that most fits, say the authors, is procrastination: TV viewers put off changing channel till the last possible moment, even if they prefer the other side. This is consistent with findings that folk do not cancel gym membership even when they no longer use the gym; and irrationally delay contributing to their pensions. The homo economicus model is defunct: in TV, as in other things, a little dose of paternalism may help.