Talks at Google Richard Thaler | Nudge
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May 9, 2025 Join behavioral economist Richard Thaler, Nobel Prize winner and professor at the University of Chicago, as he dives into the nuances of decision-making. Discover how our choices are influenced by the presentation of options and the idea of 'nudging' to improve decisions without limiting freedom. Thaler discusses the evolution of behavioral economics, new workplace strategies like 'nudge' and 'sludge,' and even the importance of teaching probability in schools. His insights bridge economics and human behavior, revealing innovative ways to navigate life's choices.
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Behavioral Economics Gains Mainstream Status
- Behavioral economics is now widely accepted as part of the economist's toolkit rather than a fringe idea.
- Applying behavioral insights to macroeconomic issues like inflation expectations remains a major challenge.
Inflation Expectations Driven by Salient Prices
- People form inflation expectations largely based on frequently seen prices like gasoline.
- The shift to EVs may change inflation perception since gas prices won't be visibly impacting consumers.
Upward Wage Stickiness Is Behavioral
- Wages may be sticky upwards due to behavioral reluctance to raise pay even amid labor shortages.
- Companies use bonuses and framing to navigate wage increases without permanently raising wages.
