
Rational Minds Part 3: Rethinking Bubbles - Vernon Smith
The Joe Walker Podcast
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The Importance of Individual Decision Making
People use trial and error to find something that they're satisfied with. How should we think about speculative bubbles in asset prices? Well, my first two biggest shocks in my life were first the discovery that marks markets for ordinary supply and demand goods were far better than anyone could have imagined. And then the second shock was that we started doing asset trading and we thought, well, let's begin with a baseline that's pretty easy.
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