Mental accounting: economists versus humans

One Yale economist certainly thinks so. But even if he’s right, are economists any better? We find out, in this update of a 2022 episode.

• SOURCES:
  • James Choi, professor of finance at the Yale School of Management.
  • Morgan Housel, personal finance author and partner at the Collaborative Fund.

• RESOURCES:
  • The Art of Spending Money: Simple Choices for a Richer Life, by Morgan Housel (2025).
  • “Popular Personal Financial Advice versus the Professors,” by James J. Choi (Journal of Economic Perspectives, 2022).
  • “Media Persuasion and Consumption: Evidence from the Dave Ramsey Show,” by Felix Chopra (SSRN, 2021).
  • The Psychology of Money: Timeless Lessons on Wealth, Greed, and Happiness, by Morgan Housel (2020).
  • “In Bogle Family, It’s Either Passive or Aggressive,” by Liam Pleven (Wall Street Journal, 2013).

• EXTRAS: 
  • “Harold Pollack on Why Managing Your Money Is as Easy as Taking Out the Garbage,” by People I (Mostly) Admire (2021).
  • “People Aren’t Dumb. The World Is Hard,” by Freakonomics Radio (2018).
  • “Everything You Always Wanted to Know About Money (But Were Afraid to Ask),” by Freakonomics Radio (2017).
  • “The Stupidest Thing You Can Do With Your Money,” by Freakonomics Radio (2017).

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