Richard Thaler Quotes

How could economics not be behavioral? If it isn't behavioral, what the hell is it?

It is true that from a behavioral economics perspective we are fallible, easily confused, not that smart, and often irrational. We are more like Homer Simpson than Superman. So from this perspective it is rather depressing. But at the same time there is also a silver lining. There are free lunches!

Personally, I don't see old economics and behavioural economics as opposed. It is useful to assume people are rational as a good approximation to their long term behaviour, but it would be unwise not to think how in practice their behaviour may deviate from that simplifying assumption.

Economists discount any factors that would not influence the thinking of a rational person.

Economists are economical, among other things, of ideas; most make those of their graduate days do for a lifetime.

Perhaps the most widespread misunderstanding of economics is that it applies solely to financial transactions. Frequently this leads to statements that "there are noneconomic values" to consider. There are, of course, noneconomic values. Indeed, there are only noneconomic values. Economics is not a value itself but merely a method of trading off one value against another.

Neoclassical economics ... has uncovered important truths about the nature of money and markets because its fundamental model of rational self-interested human behavior is correct about 80% of the time.

As an economist, I'm aware that life is full of trade offs.

Whereas economic man maximises, selects the best alternative from among all those available to him, his cousin, administrative man, satisfices, looks for a course of action that is satisfactory or 'good enough'.

There's a very good reason for why economics developed the way it did, and that is that in many situations, the assumption that people will exploit the opportunities available to them is very plausible, and it simplifies the analysis of how markets will behave.

I started off thinking that maybe the social sciences ought to have the kinds of mathematics that the natural sciences had. That works a little bit in economics because they talk about costs, prices and quantities of goods.

Economics is a subject that does not greatly respect one's wishes.

The economist rarely examines the presuppositions of the models with which he works. The economist simply commences with individuals as evaluating, choosing, and acting units. This starting point for analysis necessarily draws attention to the choice or decision environment for the individuals who must make selections from among the alternatives.

Human decision-making is complex. On our own, our tendency to yield to short-term temptations, and even to addictions, may be too strong for our rational, long-term planning.

Since scarcity is the basic economic problem, if it does not exist then there is no reason for my economics course. Devoting time to the study of how people use limited resources to fulfill unlimited wants and needs should help us to discover how to best utilize the resources we have at our disposal.

Economics is everywhere, and understanding economics can help you make better decisions and lead a happier life.

Economists, firstly, regard only one part of man's nature, and treat him simply as a money-making animal; secondly, they disregard the influence of custom, and only take account of competition.

Economic theory does not work with human beings. We are far too messy.

Sunk costs? We pay too much attention to them.

I practice what has come to be called behavioral economics.

Economics is a choice between alternatives all the time. Those are the trade-offs.

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.

The tradition of Chicago price theory is a good one, and it is a low-tech methodology that tries to apply simple economic theory to the world.

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

Economics is counterintuitive. It just is.