This podcast delves into behavioral economics, focusing on the work of Richard Thaler and his book "Misbehaving". It explores how traditional economic models often fail to account for the psychological factors influencing human behavior, leading to predictable biases. The episode examines various phenomena challenging these models, including anomalies in self-control, sunk cost fallacy, endowment effect, and the role of social norms and mental accounting. Through engaging stories and anecdotes, the podcast emphasizes the need for economic models to incorporate psychological factors and challenges the assumption of rational economic actors.
