![]() ![]() He told me that he had bottles in his cellar that he had purchased long ago for $10 that were now worth over $100. “One case came from Richard Rosett, the chairman of the economics department and a long-time wine collector. Are there choices we make outside the model of constrained optimisation? This was the popular economic theory at the time, based on the premise that people choose the best from a limited budget and that prices always fluctuate based on supply and demand. In his book, cheekily titled ‘Misbehaving’, Thaler recounts a story about challenging a professor who also happened to be a wine collector. ![]() A decade of research later, his ideas lead to a new area of study, Behavioural Economics. Thaler hypothesised that this must have some impact on our finances. In fact, many of us do things that make no analytical sense at all. Thaler recognised that people’s behaviour in day-to-day life wasn’t always predictable. Thaler when he was an economics PhD student. We are not robotic we do not always have a logical explanation we often make decisions that don’t benefit our happiness, health or wealth. They’re the things we do that are often irrational, at best loveable, and at worst, annoying to those we love. ![]() At the very heart of what makes us individuals are our idiosyncrasies. ![]()
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