Misbehaving: The Making of Behavioral Economics
by Richard H. Thaler
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Ming made 4 highlights on Misbehaving: The Making of Behavioral Economics
Credit card companies insisted gas stores framed cash customers as getting a "discount", vs the credit card customers getting a "surcharge"!
Adam Smith himself wrote a long treatise on the passions of the human mind before writing his magnum opus, Wealth of nations.
Traditional economics have long relied on actors being economically sophisticated AND rational. 😅😅 Crazy how we still study that in school!
Opportunity cost is vague and abstract, leading us to greatly overvalue what we currently have.
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Minute Inc. 2017