[thechat] better argument this time

[Plunkett, Matt]

Hrm...wild.  This is completely different than what they taught us in basic
econ at U of C.  IIRC, Robert Lucas's economic theory (for which he got a
Nobel prize) was based on the idea that individual self interested consumers
are a powerful force that can cause economic growth.  I haven't read this
guy Thaler's stuff...but I wonder if the article is misrepresenting what he
came up with.

-----Original Message-----
From: Madhu Menon [mailto:webguru at vsnl.net]
Sent: Wednesday, January 08, 2003 1:46 PM
To: thechat at lists.evolt.org
Subject: Re: [thechat] better argument this time

>The notion that people always act rationally and in their own interest is
>a pillar of economic theory. So it's interesting that a group of
>economists, led by the University of Chicago's Richard Thaler, should
>contribute some of the most damning evidence of people's proclivity for
>irrational decisions. Building on work by Princeton psychologists Daniel
>Kahneman and Amos Tversky, these so-called behavioral economists have
>shown not only that many of our economic decisions are irrational, but
>also that our waywardness is predictable.