Nudge: improving decisions about health, wealth and happiness
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Speaker(s): Professor Richard Thaler
Chair: Professor David De Meza
Recorded on 23 March 2009 in Old Theatre, Old Building.
Standard economic analyses rely on an unrealistic model of human behaviour in which economic agents are hyperrational robots. Modern behavioural economics takes a more realistic approach and assumes that economics agents are humans, who sometimes forget where they put their keys, panic in the face of economic volatility, and are growing more obese by the day. The theme of Nudge is that it is possible to help such humans make better choices without taking away their freedoms, just by giving them a gentle nudge. The financial crisis of 2008 makes the message of Nudge more relevant than ever, both in determining how we got into this mess, how we can get out, and how we can prevent another crisis.
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