Sumit Agarwal - Kiasunomics 2

Building on the success of the first volume,Kiasunomicshas returned to explain, in clear and simple prose, how economic principles shape our everyday lives, and influence the decisions we make.Kiasunomicsexplores many topics near and dear to many Singaporeans public housing, education, and even shopping! The book also wonderfully illustrates how exciting and original research can help us better understand our ever-changing environment, and guide us to make better and more informed choices.

Professor Tan Eng Chye

President, National University of Singapore

The authors have mastered the knack of explaining complex behavioural economics concepts in language that is easy for a layman to understand. They contextualise these insights to Singapore, which make them even more relevant. Their research is first-rate, and the insights interesting. A great follow-up toKiasunomics!

Mr Piyush Gupta

Chief Executive Officer and Director, DBS Group

Economics comes alive in our daily behaviour and decisions. Using the life journey of the protagonist Teng from his birth to adulthood, the authors adopted an easy conversational style to describe common decisions we all made to minimise living costs, optimise opportunities and maximise investment potential. It is a lighthearted yet so-real rendition of how we effectively manage ourkiasuismand fear of missing out on anything.

Ms Claire Chiang

Co-Founder, Banyan Tree Holdings

Published by

World Scientific Publishing Co. Pte. Ltd.

5 Toh Tuck Link, Singapore 596224

USA oce: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601

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National Library Board, Singapore Cataloguing in Publication Data

Name: Agarwal, Sumit. | Ang, Swee Hoon. | Sing, Tien Foo.

Title: Kiasunomics 2 : economic insights for everyday life / Sumit Agarwal,

Ang Swee Hoon, Sing Tien Foo.

Description: Singapore : World Scientific, [2020]

Identifier(s): OCN 1135957625 | ISBN 978-981-12-1839-2 (paperback) |

ISBN 978-981-12-1709-8 (hardcover)

Subject(s): LCSH: Economics--Singapore--Psychological aspects. |

Consumer behavior--Singapore.

Classification: DDC 330.019--dc23

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

Copyright 2021 by World Scientific Publishing Co. Pte. Ltd.

All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the publisher.

For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher.

For any available supplementary material, please visit

https://www.worldscientific.com/worldscibooks/10.1142/11741#t=suppl

Desk Editor: Jiang Yulin

Design and layout: Loo Chuan Ming

Printed in Singapore

Contents

Foreword

I first read Kiasunomics back in 2017, when Sumit, Swee Hoon, and Tien Foo sent me a copy. It was interesting and easy to read.

I have some background in economics I completed a BSc (Econ) degree back in 1991 and I have to admit that economics concepts are not easily explained to the layman. I enjoyed how the authors contextualised the topics to Singapore, and made the issues easy to understand.

In January 2020, Swee Hoon passed me the draft for Kiasunomics2, and I had the privilege of a preview before the book was published.

I believe most of us will find the authors insights on topics such as app-hailing, mobile payments, mobile wallets particularly interesting, with these technologies being recent innovations that have very quickly become part and parcel of consumer behaviour in Singapore. Like Father, Like Son? will resonate with many parents. Inter-generational housing wealth is a topic that many in my generation are probably thinking about.

More importantly, many academics know that I am a champion of research into Singapore issues. We are a crucible of policy experimentation. Many countries are curious about how Singapore manages issues like ageing, education for a new era, housing for masses, inequality, and environmental protection. Even in managing the coronavirus disease, or COVID-19, other countries are interested in what we do.

I do not think that doing research on Singapore topics, versus gaining an international audience and publishing in top-tier journals, are mutually exclusive. Local research in fact distinguishes Singapore universities from other universities around the world.

I would therefore like to thank Sumit, Swee Hoon, and Tien Foo for their enthusiasm in local research. I am glad that they are donating the royalty proceeds from Kiasunomics to bursaries and scholarships, and have pledged to do the same for Kiasunomics2.

Ong Ye Kung

Minister for Education
(2015 2020)

Acknowledgements

O ur thanks to our research collaborators as well as our National University of Singapore colleagues whose interesting and meaningful research help to make this book possible:

BASU Debarati

CHAROENWONG Ben

CHENG Shih Fen

CHEONG Alan

CHIA Liu Ee

CHOI Hyun-Soo

CHOMSISENGPHET Souphala

CHONG Juin Kuan

CHU Junhong

DIAO Mi

FAN Yi

GHOSH Pulak

GOETTE Lorenz

HE Jia

HO Teck Hua

KEPPO Jussi

KOO Kang Mo

LI Jing

LI Keyang

LIM Cheryl

LIM Yong Long

LIU Haoming

MAHANAAZ Sultana

MEIER Stephen

PAN Jessica

PAREEK Bhuvanesh

PNG Ivan P.L.

QIAN Wenlan

QIN Yu

REEB David M.

RENGARAJAN Satyanarain

RUAN Tianyue

SERU Amit

SONG Changcheng

TAN Poh Lin

TEO Ernie

TIEFENBECK Verena

VOLLMER Derek

WANG Davin Hong Yip

WANG Zhiwen

WONG Wei-Kang

WU Jing

YAN Jubo

YANG Nan

YANG Yang

YEUNG Bernard

ZHANG Jian

ZHANG Xiaoyu

ZHU Hongjia

ZOU Xin

Our heartfelt appreciation also extends to the organisations who generously shared their data with us so that research can be conducted to benefit the society.

The talented staff at World Scientific Chua Hong Koon, Jiang Yulin and Jimmy Low deserve praise for their role in shaping this book.

We also thank Professor Andy Rose, Ms Chua Nan Sze and Ms Dawn Chin at National University of Singapore Business School; Professor Lam Khee Poh and Associate Professor Yu Shi Ming at School of Design and Environment, and Dr Seek Ngee Huat and Board Members of the Institute of Real Estate and Urban Studies (IREUS) for their encouragement and support.

Finally, our overriding debt continues to be our families who provided the time, support and inspiration to our research and preparation of this book.