The Happiness Lab with Dr. Laurie Santos How to Spend Your Time and Money Better (with Nobel Prize Winner Richard Thaler)
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Sep 22, 2025 
Join Nobel Prize-winning behavioral economist Richard Thaler and fellow economist Alex Imas as they explore the quirks of human decision-making around money and time. They discuss the phenomenon of the endowment effect and why we cling to our possessions. Discover why people often procrastinate important tasks and how mental accounting influences our spending habits. Thaler shares practical strategies like the Save More Tomorrow program to improve financial decisions, while shedding light on our irrational tendencies in everyday life.
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People Deviate Systematically From Rational Agent Model
- The standard economic model assumes perfectly rational, self-interested agents who always optimize decisions.
- Thaler and Imas show many systematic anomalies where humans deviate from that model in predictable ways.
How The Winner's Curse Was Discovered
- The winner's curse shows auction winners often overpay because the winner had the most optimistic estimate.
- Oil companies discovered winners consistently found less oil than their engineers predicted.
Bid Lower When Many Bidders Compete
- In crowded auctions lower your bid to account for others' information and optimism.
- Make bids that would still be worthwhile if you actually win.
