Originally published in The Australian Financial Review on June 4, 2013

Economists are often accused of knowing the price of everything and the value of nothing. Consumers, on the other hand, are assumed to have good knowledge of both. Indeed free-market economics rests more heavily on the assumption that individuals know what’s best for them than on any other assumption. While it is relatively clear that individuals are best placed to decide what they want for lunch or what colour car they would like to drive, it’s not always the case with all decisions they face.

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