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pierredv : richard-thaler   2

Richard Thaler wins the Nobel prize for economic sciences - Free exchange, The Economist Oct 2017
"Setting out to explore why people feel losses more keenly than gains, he helped uncover the endowment effect: a tendency to value something more highly just because you own it."

"The importance of context also arose in Mr Thaler’s work on “mental accounting”. In thinking about money, people tend to compartmentalise, grouping certain types of spending or income together. ... In some cases this might amount to a strategy for managing imperfect self-control (as in the credit-card debt example). More broadly, it reflects the human tendency to tackle cognitive problems in pieces, rather than as a whole. "

"Mr Thaler, with his colleague Hersh Shefrin, understood choices as battles between two competing cognitive forces: a “doer” part of the brain focused on short-term rewards, and a “planner” focused on the long term. Willpower can help suppress the doer’s urges, but exercising restraint is costly. "
Richard-Thaler  Nobel-Prize  economics  TheEconomist  psychology  money  cognitiion 
january 2018 by pierredv

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