Second City Works presents "Getting to Yes, And" Getting to Yes, And… | Richard Thaler and Alex Imas – ‘The Winner’s Curse’
Oct 23, 2025
Richard Thaler, Nobel-winning behavioral economist known for nudge theory, and Alex Imas, Booth professor studying negotiations and applied AI. They explore the winner’s curse in auctions and SPACs. They examine cooperation vs. self-interest in games like split-or-steal and the ultimatum game. They discuss loss aversion, endowment effects, present bias, and practical commitment devices.
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Economics Now Accepts People Care About Others
- Behavioral economics shifted acceptance of pro-social preferences; economists now accept people aren't purely selfish.
- Richard Thaler notes this idea was heretical decades ago but is now mainstream in economics.
Honesty Boxes Need Locks Because A Few Will Steal
- Thaler admired farmstands using honesty boxes nailed down to deter the minority who'd steal money.
- He and Alex later saw the same locked-money-box practice at Swiss alpine huts with wine and cheese.
Fairness Overrides Marginal Self-Interest
- The Ultimatum Game reveals fairness matters more than narrow self-interest.
- Thaler cites Guth's experiments showing offers under ~20% are typically rejected despite being 'better than nothing.'
