Peter Singer Quotes

There is much evidence that people are not rational, in the economist’s sense; nor do they take into account expectation, in the precise interpretation of that word. As a result, economic theory often does not correspond with what happens in the market. Some would argue that we need descriptive economics. I would argue that all should be taught about probability, utility, and MEU (maximization of expected utility) and act accordingly.

Traditional economics is based on imaginary creatures sometimes referred to as 'Homo economicus.' I call them Econs for short. Econs are amazingly smart and are free of emotion, distraction or self-control problems. Think Mr. Spock from 'Star Trek.'

Early in my doctoral training at Cornell University, I became immersed in the behavioral decision theory paradigm.

Even though we don't always realize it, as the day goes on, we have increased difficulty exerting self-control and focusing on our work. As self-control wears out, we feel tired and find tasks to be more difficult, and our mood sours.

Psychologists and economists love to talk about the notion of two selves: present self and future self. It's a nice way to explain the tendency to have one preference about the future, but a very different preference when the future becomes the present.

Put simply, behavioural economics argues that human beings' decision-taking is guided by the evolutionary baggage which we bring with us to the present day. Evolution has made us rational to a point, but not perfectly so. It has given us emotions, for example, which programme us to override our rational brain and act more instinctively.

The sad truth is that many behavioral economists know very little about psychology.

Behavioral economics offers a plausible explanation for overreactions by the market. For example, a long period of bad performance can lead to stereotyping.

I practice what has come to be called behavioral economics.

We behavioralists differ from our more traditional brethren in the way we characterize agents in the economy.

The lesson of my field, behavioral economics, is that we need to understand the ways in which we differ from the rational human assumed in standard economic theory.

It is so hard to make important decisions that we have a great urge to reduce them to rules.

We humans actually need help controlling our impulses - nudges.

Humans are hard-wired to be irrational when it comes to financial decisions. We must understand that so we don't become the sucker at the poker table.

If you give somebody a lot of questions to answer and then they walk by a bowl of candy, they are more likely to grab the candy because they're tired out from answering questions and can't resist.

The concept of loss aversion is certainly the most significant contribution of psychology to behavioral economics.

Adults devise a plan and follow it, children do what feels good.

Avoid making irrevocable decisions while tired or hungry.

Self-restraint may be alien to the human temperament, but humanity without restraint will dig its own grave.

The most dangerous thing you can do is to take any one impulse of your own nature and set it up as the thing you ought to follow at all costs.

I despise people who can't control themselves.

When self control is lacking in small things, the ability to apply it to matters of importance withers away. Every day in which one does not at least deny himself some trifle is badly spent and a threat to the day following.

You have a brake in your brain that stops you doing stupid things. The older you are, the earlier that brake comes on. When you're 20 you stop at nothing; when you're older you're cleverer than when you're 20, so your brain brake operates more often!

The ability to subordinate an impulse to a value is the essence of the proactive person.

Retirement savings is probably behavioral economists' greatest success story. It is a prototypical behavioral-economics problem because saving for retirement is cognitively hard - figuring out how much to save - and requires self-control.