Thaler’s Nobel Does Not Challenge Mainstream Economics

Prizing nudges over shoves misjudges what we need right now

Behavioral economics contends that economic agents  -- contrary to orthodoxy theory -- do not always behave in ‘rational’ ways.  Human beings base their decisions on "biases" or "heuristics." For example, behavioral economists argue that we tend to overvalue things we already own. This is known as an “endowment effect.” The experiments ...
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