Misbehaving: The Making Of Behavioral Economics Page

: The mythical, hyper-rational agents found in traditional economic textbooks. They have the processing power of a supercomputer, no emotions, and never succumb to temptation.

is available through retailers like Walmart, Barnes & Noble , and World of Books . Misbehaving: The Making of Behavioral Economics Misbehaving: The Making of Behavioral Economics

Thaler’s "misbehavior" refers to his refusal to ignore these human quirks, much to the annoyance of his colleagues who saw psychology as an "amusing sideshow". Key Tales of "Misbehavior" : The mythical, hyper-rational agents found in traditional

: A friend of Thaler’s owned a bottle of wine he bought for $10 that was now worth $100. He wouldn't sell it for $100, but he also wouldn't buy another bottle at that price. This illustrated the Endowment Effect —we value what we own more than what we don't. This illustrated the Endowment Effect —we value what