Professor Richard Thaler: Masters in Business (Audio)
Masters in Business
00:00
Why Economists Won't Recognize Sunk Costs
The idea of thisperfectly rational son making all the right choices, unemotionally, with good self control and perfectly calculated to their needs, that clearly doesn't exist. And so the average return over the course of 30 years has been about three % for a four oon k invest. They have a great tendency to buy high and sell low. Why is it so challenging to get economists to actually understand people don't behave this way in the real world?
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