Dan Ariely is the James B. Duke Professor of Psychology and Behavioral Economics at Duke University, with appointments in the Fuqua School of Business, the Center for Cognitive Neuroscience, and the department of Economics.
I have one more idea: What if we only allow people to be drug reps if they are over 75 and unattractive? Not only would these individuals have more personal experience with the healthcare system, it also could reduce conflicts of interest and open up job opportunities to an undervalued population.
TED Talks Psychologist Barry Schwartz takes aim at a central tenet of western societies: freedom of choice. In Schwartz’s estimation, choice has made us not freer but more paralyzed, not happier but more dissatisfied.
DANIEL KAHNEMAN is the Eugene Higgins Professor of Psychology Emeritus at Princeton University and Emeritus Professor of Public Affairs at the Woodrow Wilson School of Public and International Affairs.
See on Scoop.it – Bounded Rationality and Beyond The debate in theoretical finance between the efficient market hypothesis and the field of the behavioral finance is of great interest. Since its emergence, the efficient market hypothesis has been the most important theory that explains the behavior of the various agents in the financial markets and neglects almost any potential impact of human behavior in the investment process. However, from the end of 1970s and the beginning of 1980s a growing number of researchers showed the anomalies of this theory. The anomalies of the modern portfolio models have prompted the development of what is now known as behavioral finance. Behavioral finance integrates psychology and economics in finance theory and has its roots in the pioneering work of psychologists Daniel Kahneman and Amos Tversky (1979). The purpose of this paper is to provide a synthesis of the behavioral finance literature over the past two decades. See on docs.google.com
Can one define and test the hypothesis of (un)bounded rationality in stochastic choice tasks without endorsing Bayesianism? Similar to the state specificity of assets, we rely on state-specific goal formation. In a given choice task, the list of state-specific goal levels is optimal if one cannot increase the goal level for one state without having to decrease that for other states. We show that this allows to relate optimality more easily to bounded rationality where we interpret goal levels as aspirations. If for the latter there exist choices satisfying all state-specific aspirations and if one such choice is used, we speak of satisficing which may or may not be optimal.
Downloadable! After having explained why economics introduced utility functions and later the axioms about behaviour in a risky environment, the paper examines the interest for microeco-nomics of the concept of bounded rationality. It starts from a simple model of the labour market on which agents scarch and adapt their demands, contributing unconsciously to the emergence of a unique price. More complex models are thereafter introduced, which enables to draw a picture of the variety of possible trajectories in a dynamic microeco-nomic system. This approach enables to enlarge microeconomics and to explain numerous facts poorly taken into account in the traditional presentations.