Richard H Thaler - Misbehaving- The Making of Behavioral Economics (epub)

27 the theory of human capital formation: See Becker (1962, 1964).
27 Bernoulli in 1738: See Bernoulli ([1738] 1954) for an English translation.
29 The Theory of Games and Economic Behavior: von Neumann and Morgenstern (1947).
30 Baumol had proposed an alternative: Baumol (1962).
Chapter 5: California Dreamin’
35 “Consumer Choice: A Theory of Economists’ Behavior”: Published as Thaler (1980).
38 Thinking, Fast and Slow: Kahneman (2011).
40 “slow hunch”: Johnson (2010).
40 private value for a token: See Smith (1976).
Chapter 6: The Gauntlet
44 whether real managers actually behaved this way: See Mongin (1997) and Frischmann and Hogendorn
(2015) for a review of this debate on marginal analysis.
45 “This paper raises grave doubts”: Lester (1946).
45 “He would simply rely on his sense or his ‘feel’ of the situation”: Machlup (1946).
46 billiard players: Friedman (1953), p. 21.
48 “preference reversals”: Lichtenstein and Slovic (1973).
49 Raising the stakes made things worse: Grether and Plott (1979).
51 “Suppose there were people doing silly things”: Markets can actually exacerbate welfare losses
resulting from the presence of consumer biases. Firms may not have an incentive to debias consumers
since under some circumstances, firm profits are increasing in the degree of naiveté: credit card late
payment fees (Heidhues and Kszegi, 2010); gym memberships (DellaVigna and Malmendier, 2006);
printer cartridges and hotel room shrouded fees (Gabaix and Laibson, 2006).
51 Adam Smith’s invisible hand: For a thoughtful take on how to think about the concept of the invisible
hand, see Ullmann-Margalit (1997).
52 transform people into rational agents: The study of how profit-maximizing firms interact with Human
consumers is the subject of the exciting field of behavioral industrial organization. For a textbook
treatment see Spiegler (2011). The examples discussed in chapter 13 are also relevant.
52 failing to act in accordance with the rational agent model is not fatal: For a thorough analysis of these
kinds of arguments see Russell and Thaler (1985), Haltiwanger and Waldman (1985), and Akerlof and
Yellen (1985).
53 “An Economic Theory of Self-Control”: Thaler and Shefrin (1981).
Section II: Mental Accounting
55 “mental accounting”: My paper was Thaler (1980), and they suggested the term “mental accounting” in
Kahneman and Tversky (1984).
62 Macy’s: Barbaro (2007).
62 surprisingly candid press release: Tuttle (2012).
Chapter 7: Bargains and Rip-Offs