10 thoughts on “Richard Thaler: “The Behavioralizing of Economics” | Talks at Google

  1. "Economic science" serves as modern religion. Its a set of bullshit "explanations" and justifications meant to maintain semblance of order and structure till we get scientific/technical/resource means to really explain what and how is happening and act according to it. What makes progress slower is that monkeys (we all are) on all levels are systematically bribed by circumstances not to rock the boat or change anything. Facts that cannot be "eaten" are not worth pursuing. Thats our "economic science".

  2. The beauty of classical economics was that you could use math to come to conclusions. With behavioral economics, you know nothing and can't draw any conclusions, except that fools make bad decisions and always hope to get lucky. So basically the point is that there is no point in analyzing economics after all. Instead of investing in the stock market, you could give your money to some random dude in Vegas or some internet poker addict.

  3. At 46:25 The question, "How do they square these ideas that are both popular and contradictory?"

    To me it seems similar to the way that so many intelligent people also believe in religion. They are able to compartmentalize incompatible world views. Their 'system 1' offers a way forward based on the current context and 'system 2' backs up that model with post-hoc rationalizations.

  4. The actual 'scientific' reason that the fruit seller put a lock on the money box and kept the fruits open was to deter one dishonest person who could steal all the cash and walk, but cannot steal ALL the fruit if they wish.

  5. People are homo economicus. They maximise the utility. Even if they might make mistakes, there intention is always utility maximisation. The mistakes are so random that there is no way to model these. So, so called behavioural economics doesn’t make any sense.

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