The Market Is Going to Be Rational

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The market is going to be rational, because it's going to punish people even if they're not paying attention. So that's one thing about rationalityand ive seen even beyond the market. When you say about humanity, collectively, each one has makes a mistake of behaving intransitive preferences. Collectively, it doesn't mean that the whole world will have thisrit the thing washed out so beautifully n an aggregationanda.

Nassim Nicholas Taleb, author of Skin in the Game, talks with EconTalk host Russ Roberts about the ideas in the book. This is the third episode of EconTalk with Taleb related to the general topic of skin in the game and how it affects decision-making and policy in an uncertain world. This episode focuses on rationality, religion, and the challenge of thinking about probability and risk correctly in a dynamic world.