Behavior economics began in the fifties and sixties with morrisolay and daniel elsburg. Mervan: The idea that people maximis expected utility, it is a strange concept. He says we need to ask deeper questions about what is the sensible way to react to a situation of great uncertainty. And i think that need be ther foi to go back and ask deeper questions as well.
John Kay and Mervyn King talk about their book, Radical Uncertainty, with EconTalk host Russ Roberts. This is a wide-ranging discussion based on the book looking at rationality, decision-making under uncertainty, and the economists' view of the world.