Richard Thaler and Hal Varian: Behavioral Economics

Richard Thaler, Behavioral Science and Economics Professor, University of Chicago; Author, Misbehaving: The Making of Behavioral Economics

Hal Varian, Chief Economist, Google

George Anders, Contributing Writer, Forbes – Moderator

Traditional economics assumes rational actors. Our lived experiences, however, tell us otherwise: real people are often error-prone individuals rather than Spock-like automatons. Whether buying concert tickets or applying for a mortgage, we all make decisions that deviate from assumed rationality standards. We misbehave, and our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make smarter decisions in our personal lives, our businesses and our governments. Thaler and Varian, economists of the information age, discuss the intersection of economics and psychology, and offer innovative strategies to approach an increasingly complex world.