Goodbye Homo Economicus

This year, Richard Thaler won the Nobel Memorial Prize in Economic Sciences. His research points to the fact that humans are economically irrational. Homo Economicus is a simplifying construct that has, for years, been the basis of economic theory. It assumes all economic actors are "rational" and only interested in maximizing personal utility. That is not true.

 

There's this guy...           Richard Thaler wins Nobel.         Francis Edgeworth.

 

Financial forecasters vs. weather forecasters.       The Japanese Miracle.

 

Examples of irrationality.       Rejecting Homo Economical Rationalism.

 

Bounded Rationality.       Most cooperative species on Earth.

 

Empathy, sympathy dread.       Paul Piff's Study (Ted Talk - 2014).

 

Science advances one funeral at a time.       Goodbye Homo Economicus.