This video explains behavioral economics, which is a field of economics that relaxes the assumption of rationality? Definition of rationality in the video: “A rational being should pursue enlightened self-interest.” Baumeister (2001)
Thank goodness I found this series of lectures online. Excellent work! Thank you very much for the clear and concise explanation, Ashley. Keep up the great work!
Behavioral economics is key to success , it's better than classical economics and all contrarian investors should study behavioral economics more than Classical economics
This BE course along with MIT's OCW BE course is the best BE course on YT. As an undergrad. BA Econ. and MBA Intl. Econ. major grad, this BE course adds in the missing elements. When I was studying Econ. at college, Prof. Thaler, et al. had yet to publish their seminal Nobel Econ. Prize BE research. Perhaps, I should enrol in a PhD. Econ. course online majoring in BE? Any suggestions of where to enrol? Thanks, Prof. Ashley.
By the way behavioral economics is not only rational thinking vs irrational behaviour ,in reality it's connected to our biology and psychological mind and psychology can do anything in finance
The main texts are: 1) Thinking Fast & Slow by Daniel Kahneman 2) Misbehaving by Richard Thaler 3) Predictably Irrational by Dan Ariely (this is more of a fun intro that allows me to play around with some of the ideas) When I first started teaching the course, I used the Wilkinson and Klaes textbook, which was very helpful as well.
