Loss Aversion Illustrated with Golf

Kelly welcomes Richard Thaler, the 2017 recipient of the Nobel Memorial Prize in Economic Sciences, to the podcast along with his co-author, Professor Alex Imas, to talk about their updated version of Thaler’s seminal book “The Winner’s Curse.”

“Rationality is an assumption in economics, not a demonstrated fact.” 

“People are not thinking enough about what everyone else is thinking.” 

“Roughly speaking, losses hurt us about twice as much as gains.”