Freakonomics Radio EXTRA: People Aren’t Dumb. The World Is Hard. (Update)
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Jul 15, 2024 Richard Thaler, a Nobel laureate and pioneer in behavioral economics, shares his journey from unlikely winner to academic influencer. He humorously discusses human irrationality and how small 'nudges' can improve decision-making in finance and charity. Thaler reflects on past economic crises, the impact of behavioral insights on policies, and challenges like Bitcoin skepticism. He also candidly addresses the complexities of life after winning the Nobel Prize, emphasizing that success doesn't shield one from daily struggles.
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Thaler's Nobel Scare
- Richard Thaler jokingly blames Stephen Dubner for almost ruining his Nobel Prize chances.
- Dubner revealed Thaler's authorship of a confidential report on Kahneman and Tversky's work.
Thaler's Unlikely Path
- Richard Thaler wasn't a top student, lacking strong math and econometrics skills.
- He carved a niche in economics by focusing on areas he excelled in, leading to behavioral economics.
Supposedly Irrelevant Factors
- Traditional economics ignores "supposedly irrelevant factors" like sunk costs and default options.
- Thaler's work shows these factors significantly influence real-world decisions.
