Thaler: How We Can Make Better Financial Decisions
Investors often 'misbehave' despite the theory of 'rational actors.'
In a perfect world of economic intelligence, Richard Thaler notes, we would all make decisions like the famous "Star Trek" character Mr. Spock, where nearly everything is carefully analyzed.
"But I don't know anyone like that," says Thaler, who calls these idealized Vulcans "Econs." Instead, we more often make decisions like Homer Simpson.