Economic Perspectives - K. Maina Writes

The Diderot Effect – How One Purchase Starts a Chain Reaction

There’s a true story behind this idea, and it begins in 18th-century France. Denis Diderot, a philosopher and writer, lived a modest life for many years. Money was often tight, and his possessions reflected that simplicity. Then something unexpected happened.Empress Catherine the Great of Russia purchased Diderot’s entire library, paying him generously and even allowing […]

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When Breaking a Habit Breaks You Back

There’s a strange thing that happens when a person tries to change a habit. At the beginning, the mind feels fired up with determination. You’re convinced: this time I’m stopping for good. The conviction feels unshakeable. You feel powerful, in control, almost reborn. But slowly, the old habit starts whispering again.A quiet urge, a familiar

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The Prisoner’s Dilemma – How Self-Interest Can Trap Us

A little background…Game Theory, the field that studies how people make decisions when their choices affect one another, was developed by John von Neumann and later expanded by John Nash, whose work turned it into one of the most influential ideas in modern economics. Their research revealed a fascinating pattern: even when cooperation would benefit

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The Pareto Principle – The 80/20 Rule

Today I came across one of the most fascinating ideas in economics, something so simple yet powerful that it can literally reshape how we work and live—the Pareto Principle, or the 80/20 rule. A little background…This principle was introduced by Vilfredo Pareto, an Italian economist and sociologist in the late 1800s. He noticed something interesting

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