The 2017 Nobel Winner's Work in Behavioral Economics

The video discusses the contributions of key figures in behavioral economics, such as Danny Kahneman, Bob Shiller, and Richard Thaler. It highlights Thaler's role in making behavioral economics respectable and his influence on political policies, particularly through the concept of 'nudging' in retirement programs. The video also explores how behavioral economics has impacted market operations, challenging the traditional view of perfectly efficient markets by considering emotions and biases in decision-making.

Who was instrumental in making behavioral economics a respected field?

• Danny Kahneman

• Bob Shiller

• Cass Sunstein

• Richard Thaler

What is the main idea behind the concept of 'nudging' in decision-making?

• Forcing people to make the best investment decisions

• Providing financial incentives for every decision

• Eliminating all biases in decision-making

• Automatically enrolling people in beneficial programs

Which practical application is a result of Thaler's research on nudging?

• Mandatory savings accounts

• Increased taxes for non-savers

• Automatic enrollment in 401k plans

• Government-funded retirement plans

How did Thaler and Shiller challenge the traditional view of markets?

• By proving markets are always rational

• By showing that emotions and biases affect market behavior

• By eliminating all market inefficiencies

• By supporting the idea of perfectly efficient prices

What was the traditional belief about market operations before the influence of behavioral economics?

• Markets are driven by emotions

• Markets are perfectly efficient

• Markets are unpredictable

• Markets are controlled by a few individuals