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

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CONTENTS Preface 1. Supposedly Irrelevant Factors 2. The Endowment Effect 3. The List 4. Value Theory 5. California Dreamin’ 6. The Gauntlet 7. Bargains and Rip-Offs 8. Sunk Costs 9. Buckets and Budgets 10. At the Poker Table 11. Willpower? No Problem 12. The Planner and the Doer 13. Misbehaving in the Real World 14. What Seems Fair? I. BEGINNINGS: 1970–78 II. MENTAL ACCOUNTING: 1979–85 III. SELF-CONTROL: 1975–88 INTERLUDE IV. WORKING WITH DANNY: 1984–85
15. Fairness Games 16. Mugs V. ENGAGING WITH THE ECONOMICS PROFESSION: 1986–94 17. The Debate Begins 18. Anomalies 19. Forming a Team 20. Narrow Framing on the Upper East Side VI. FINANCE: 1983–2003 21. The Beauty Contest 22. Does the Stock Market Overreact? 23. The Reaction to Overreaction 24. The Price Is Not Right 25. The Battle of Closed-End Funds 26. Fruit Flies, Icebergs, and Negative Stock Prices 27. Law Schooling 28. The Offices 29. Football 30. Game Shows 31. Save More Tomorrow 32. Going Public 33. Nudging in the U.K. Conclusion: What Is Next? Notes Bibliography List of Figures Acknowledgments Index VII. WELCOME TO CHICAGO: 1995–PRESENT VIII. HELPING OUT: 2004–PRESENT
Page 5: To: Victor Fuchs who gave me a year
Page 9 and 10: PREFACE Before we get started, here
Page 11 and 12: had written plenty of other strong
Page 13 and 14: 1 Supposedly Irrelevant Factors Ear
Page 15 and 16: advice. Until very recently, other
Page 17 and 18: Humans. The good news is that we do
Page 19 and 20: now other countries around the worl
Page 21 and 22: 2 The Endowment Effect I began to h
Page 23 and 24: y Schelling’s analysis, without a
Page 25 and 26: one. He also did not sell any of hi
Page 27 and 28: some modest health benefit but is e
Page 29 and 30: seen the sweater in the store and d
Page 31 and 32: efore Kahneman and Tversky came alo
Page 33 and 34: 4 Value Theory After my day in the
Page 35 and 36: conceptual breakthrough offered by
Page 37 and 38: The way that von Neumann and Morgen
Page 39 and 40: The same is true in financial matte
Page 41 and 42: losses, as illustrated by the exper
Page 43 and 44: 5 California Dreamin’ Sherwin Ros
Page 45 and 46: had not bothered to invent Hebrew e
Page 47 and 48: 14. When I was not wandering the hi
Page 49 and 50: † There are, of course, exception
Page 51 and 52: One of the most prominent of the pu
Page 53 and 54: accordance with the rational econom
Page 55 and 56: more to give up the $ bet than the
Page 57 and 58:
Jensen about his students, and Mike
Page 59 and 60:
At some point I had to get this pap
Page 61 and 62:
7 Bargains and Rip-Offs My friend M
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the object gained and then subtract
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always a sale going on. Most of us
Page 67 and 68:
8 Sunk Costs Vince paid $1,000 to a
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you are keeping. Going to the event
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Suppose you bought a case of good B
Page 73 and 74:
Strongly Strongly Mean: 2.88 Agree
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what I do “wackonomics,” a term
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on how much slack is in the budget.
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addressed by making the option of r
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10 At the Poker Table During my tim
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Kahneman and Tversky to run experim
Page 85 and 86:
noticed that when a certain colleag
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ECON: In that case, you prefer to e
Page 89 and 90:
he portrayed the topic as a struggl
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earlier economists such as Jevons a
Page 93 and 94:
Yorker, March 29, 1976 © The Saul
Page 95 and 96:
time, economists had been moving aw
Page 97 and 98:
years and plans to leave no bequest
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much higher than a similar increase
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He devised a two-part plan to succe
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write a large check to someone you
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University of Rochester Graduate Sc
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less pleasurable. The only way to m
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the key papers are provided in the
Page 111 and 112:
INTERLUDE
Page 113 and 114:
Vermont or New Hampshire. Operation
Page 115 and 116:
idea of committing to ski more ofte
Page 117 and 118:
hundred dollars. A rebate seems to
Page 119 and 120:
what I thought they should do. Firs
Page 121 and 122:
14 What Seems Fair? Danny and Jack
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Jessie and her ever-present doll Jo
Page 125 and 126:
for something falls, in this case l
Page 127 and 128:
1990s. And what is it the bank thin
Page 129 and 130:
My takeaway from these examples is
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price, for Saturday night at eight,
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Proposers would offer half, which w
Page 135 and 136:
There is another class of games tha
Page 137 and 138:
were due to some confusion on the p
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16 Mugs At some point during the Va
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a series of simple questions. Those
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subjects how much they like the goo
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The endowment effect experiments sh
Page 147 and 148:
V. ENGAGING WITH THE ECONOMICS PROF
Page 149 and 150:
offered to the first group are: Pol
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league crowd without seeming presum
Page 153 and 154:
would no longer be irrelevant if di
Page 155 and 156:
home field advantage. Shiller was t
Page 157 and 158:
around the Earth. At the Chicago co
Page 159 and 160:
articles were about ten to twelve p
Page 161 and 162:
19 Forming a Team The “Anomalies
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invited three groups of people: dis
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Freud; Sigmund was his great-grandf
Page 167 and 168:
would want to come. Fortunately, ov
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20 Narrow Framing on the Upper East
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short life expectancy, Amos and Dan
Page 173 and 174:
one of the goals being to improve
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actually is. It is one of the few t
Page 177 and 178:
accepting this parlay, and the chan
Page 179 and 180:
Schwartz, now a professor of medica
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econometrics skills, to join us. Th
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VI. FINANCE: 1983-2003 Aside from t
Page 185 and 186:
The EMH has two components, which a
Page 187 and 188:
special issue of the Journal of Fin
Page 189 and 190:
Make a guess before continuing. Rea
Page 191 and 192:
guesses of 99 or 100; what were tho
Page 193 and 194:
22 Does the Stock Market Overreact?
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percentile), and so forth. The othe
Page 197 and 198:
whether a stock was cheap or expens
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etter the next game. Children of se
Page 201 and 202:
23 The Reaction to Overreaction Wit
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even more anomalous! To rescue the
Page 205 and 206:
24 The Price Is Not Right Recall th
Page 207 and 208:
Shiller titled his paper “Do Stoc
Page 209 and 210:
With the benefit of hindsight, it i
Page 211 and 212:
I should stress that the imprecisio
Page 213 and 214:
25 The Battle of Closed-End Funds S
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from NAV. While funds typically sel
Page 217 and 218:
This fact rules out the possibility
Page 219 and 220:
________________ * The only copy of
Page 221 and 222:
offering, sold about 1% to a consor
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He could pay $95 and get one share
Page 225 and 226:
Owen and I wrote an academic paper
Page 227 and 228:
these warning signals and realized
Page 229 and 230:
each generation has got to make its
Page 231 and 232:
this point I had adopted the pedago
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and I kept expecting to look over a
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says: “This is, of course, a very
Page 238 and 239:
Coase theorem worked in theory, whe
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shed its leaves late in the fall an
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winner.
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had the duty of negotiating with ne
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About a day after the draft order w
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I also put a bit of the blame on th
Page 250 and 251:
MBA student, during my first year a
Page 252 and 253:
who didn’t thought iPhone ownersh
Page 254 and 255:
When Cade and I tracked down Mr. Mc
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the price of early picks rational,
Page 258 and 259:
If this market were efficient, then
Page 260 and 261:
How could the decision-makers in th
Page 262 and 263:
Our relationship with the Redskins
Page 264 and 265:
managerial ladder. All economists a
Page 266 and 267:
30 Game Shows With all the research
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continuing to play, the contestant
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consider the role of “path depend
Page 272 and 273:
undertake more risk, when choosing
Page 274 and 275:
The figure shows the percentage of
Page 276 and 277:
Nick has made a nice sideline caree
Page 278 and 279:
VIII. HELPING OUT: 2004-PRESENT By
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more saving. This is not much help.
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of joining a 401(k) plan can add up
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IRS to issue to issue a series of r
Page 286 and 287:
one-on-one financial planning sessi
Page 288 and 289:
computer programming to combine the
Page 290 and 291:
ate of return on savings, and the e
Page 292 and 293:
Cass relishes more than writing a b
Page 294 and 295:
Econs are already doing the right t
Page 296 and 297:
choice,” a term both more accurat
Page 298 and 299:
I knew almost nothing about British
Page 300 and 301:
University of Chicago Law School wh
Page 302 and 303:
experiment used a letter with simil
Page 304 and 305:
locally known as lofts. In a world
Page 306 and 307:
Tempering expectations about the ma
Page 308 and 309:
mandate or budget to run randomized
Page 310 and 311:
For example, to my knowledge there
Page 312 and 313:
financial markets were the most eff
Page 314 and 315:
cannot be profitably applied to big
Page 316 and 317:
theory has now been repeatedly and
Page 318 and 319:
don’t know that gets you into tro
Page 320 and 321:
stubbornly clinging to an imaginary
Page 322 and 323:
27 the theory of human capital form
Page 324 and 325:
89 “This is illustrated by the st
Page 326 and 327:
146 conditional cooperators: Fehr a
Page 328 and 329:
210 “Worldly wisdom teaches . . .
Page 330 and 331:
Chapter 29: Football 277 “Divisio
Page 332 and 333:
342 it was the reminder . . . which
Page 334 and 335:
the Economics of Finance, vol. 1B,
Page 336 and 337:
Cooper, Arnold C., Carolyn Y. Woo,
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Rationality.” Games and Economic
Page 340 and 341:
Knobe, Joshua, Wesley Buckwalter, S
Page 342 and 343:
Modigliani, Franco, and Merton Mill
Page 344 and 345:
Macfie. Indianapolis: LibertyClassi
Page 346 and 347:
Research. Zamir, Eyal, and Doron Te
Page 348 and 349:
ACKNOWLEDGMENTS A lazy man does not
Page 350 and 351:
INDEX Page numbers listed correspon
Page 352 and 353:
Binmore, Ken, 50 “Binmore continu
Page 354 and 355:
Daily Mail, 135 Daily Show, The, 35
Page 356 and 357:
ubbles created in, 40n, 206n with d
Page 358 and 359:
Goolsbee, Austan, 352 gouging, 127-
Page 360 and 361:
Johnson, Eric, xv, 82, 180n, 299, 3
Page 362 and 363:
of managers, 187-89, 190 myopic, 19
Page 364 and 365:
National Public Radio, 32, 305 natu
Page 366 and 367:
presumed consent, in organ donation
Page 368 and 369:
St. Louis Rams, 290 St. Petersburg
Page 370 and 371:
Stigler’s Law, 296n Stiglitz, Jos
Page 372 and 373:
two-system view of mind, 103, 109 U
Page 374 and 375:
ALSO BY RICHARD H. THALER Quasi-Rat
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Richard H Thaler - Misbehaving- The Making of Behavioral Economics (epub)

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