Comments on: Dan Ariely: 2008 was a good year for behavioral economics

By: Karunakaran TK

Karunakaran TK — Tue, 30 Nov 1999 00:00:00 +0000

I completely agree with Ariely when he says that the present day crisis is a direct result of us blindly believing and relying on standard economic theory as a guiding principle of how markets and people think and work. The need of the hour is nothing short of humility in accepting that we need to explore more on the irrationalities (which we should accept as human) and how they shape our day to day decisions. We can keep the room dark by thinking that we already have all the knowledge we need to know. Or we can start learning from our mistakes, more about ourselves.

By: Danielle DuBois

Danielle DuBois — Tue, 30 Nov 1999 00:00:00 +0000

At the same time, how much of the continuation of the recession was at the hand of negativity? CNBC certainly played its own role in a bid to get viewership. But there are also sites that feature positive business and financial aspects of the “Great Recession” (despite that being a loathsome term in and of itself.) For example, there’s this, from NYC news start-up findingDulcinea.com : http://is.gd/BdpT

By: Robert Kowalski

Robert Kowalski — Tue, 30 Nov 1999 00:00:00 +0000

There are periods when markets appear to fail. But the causes of the current crises Do Not lie with human irrationality – they lie primarily with the poor judgment of policymakers (#1 FED’s easy monetary policy, #2 Federal Gov’t – Fannie &Freddie subsidising housing market/mortgage securities growth). Once the financial markets realized the excesses can’t be sustained &a bust comes after a (propped-up by the gov’t) boom – herd behavior occurred (we’re animals after all). While THERE IS IRRATIONALITY &we are not rational economic agents, on the whole ON AVERAGE WE ACT LIKE RATIONAL AGENTS. Trying to destroy &change this economic research model gives leeway to the interventionists, socialists &the like who see the “benevolence” & “wisdom” of bureaucrats &policymakers to choose for us – while they are the ones to be blamed for causing this crisis. The way we reacted should be researched to develop models, however, I see no other way than market-mechanisms for improving standards of living

By: Hay den

Hay den — Tue, 30 Nov 1999 00:00:00 +0000

That’s right. people tend to choose the path at least resistance.we should learn from our mistakes.

By: lara tomas

lara tomas — Tue, 30 Nov 1999 00:00:00 +0000

thanks for sharing this wonderful information.

By: soniya mayer

soniya mayer — Tue, 30 Nov 1999 00:00:00 +0000

I am not a economics expert so i can’t know more about it.but this article is really good and knowledgeable.i get many wonderful information.

By: Jay Elliott

Jay Elliott — Tue, 30 Nov 1999 00:00:00 +0000

Thanks for another great insight. I have recently become facinated by behavioral economics. Is it not possible to do some sort of experiment on a mock stock that eg students could bid on and you tell a few students when it will go up and down and see if they use the information or give some the ability to manipulate it and see if they do? This is just an idea i have no experiance or formal education on this work but i think it is worth discussin.