Michael Wellman launched a blog this week. Yesterday he made an excellent point about market efficiency. Tyler Cowen had pooh-poohed the problem of high-frequency trading. Mike set him straight and suggested an elegant solution to the problem, namely call markets. But what about the value of... »

Here are what I believe are fairly definitive answers to the sunk cost quiz questions. But of course feel free to take issue in the comments. SCENE:  You have a non-refundable flight but now the opportunity to road trip with some friends to your destination has come up. Which of the following are rational... »

Here's a classic litmus test for the sunk cost fallacy: You bought a ticket for a show.  The night arrives and you just don't feel like going. Do you go anyway, so as not to have wasted the money on the ticket? Probably you shouldn't. Your current decisions should not be influenced by money that is... »

I'm tired of hearing people explain that paying rent is throwing money away. Of course, they don't mean that literally. You're getting something for that money (a place to live). But with a mortgage you're building equity, right? Doesn't that fundamentally make more sense than renting? No. "Building equity" just means turning some of your... »

When rent prices plummeted throughout New York City, we were a little galled to see a small increase in rent on... »

Given the tumultuous state of the global economy, a lot of people are naturally wondering whether the worst is over. A quick scan of recent headlines shows that plenty are weighing in on the question. Morgan Stanley is boldly claiming, "Bear Market Is Not Over: Selling Today." James Paulsen, chief investment strategist... »