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Richard H. Thaler – Quasi Rational Economics

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Richard H. Thaler – Quasi Rational Economics

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Standard economics theory is built on the assumption that human beings act rationally in their own self interest.

But if rationality is such a reliable factor, why do economic models so often fail to predict market behavior accurately?

According to Richard Thaler, the shortcomings of the standard approach arise from its failure to take into account systematic mental biases that color all human judgments and decisions.

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