By the Numbers (Richard Thaler)

[Guest]

Richard Thaler, professor at the University of Chicago Booth School of Business, was awarded the 2017 Nobel Prize in Economics. Thaler’s research into irrational human behavior (like how NFL teams overvalue draft prospects) challenged “classical economics,” which depicted humans as perfectly rational actors. Of course, thanks to Thaler and his fellow researchers, we know people make economic decisions for all sorts of reasons. Let’s learn more about Mr. Irrational himself:

200%—The amount you could overvalue something once you have it already in your possession. Thaler and colleagues called this irrational behavior the “endowment effect.” 

9 million—The number of Swedish krona Richard Thaler will receive for the prize. That translates to about $1.1 million. 

7,826—The number of academic citations of Thaler’s most-cited paper, a 1985 article called “Does the stock market overreact?”

15%—How much more valuable second-round NFL draft picks are (dollar-for-dollar) than first-round picks, according to Thaler and his colleague Cade Massey. 

512%—The growth of the Undiscovered Managers Behavioral Value Fund, which Thaler helps to manage. It has nearly doubled the S&P’s performance since 2009.

Source

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https://economyandmarkets.com/economy/forecasts/most-hated-rally-in-history/

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