Category Archives: Richard Thaler

Richard Thaler

It is […] interesting to note a peculiar tendency among many economic theorists. A theorist will sweat long and hard on a problem, finally achieving a new insight previously unknown to economists. The theorist then assumes that the agents in a theoretical model act as if they also understood this new insight. In assuming that the agents in the economy intuitively grasp what it took so long to work out, the theorist is either showing uncharacteristic modesty and generosity, or is guilty of ascribing too much rationality to the agents in his model.

Richard Thaler, ‘Anomalies: The Winner’s Curse’, Journal of Economic Perspectives, vol. 2, no. 1 (1988), p. 200