Behavioural Economics and watch collecting

Richard Thaler, Daniel Kahneman and Amos Tversky are the pioneers of the field called “behavioural economics”, two of them even won Nobel prizes for their work and the third would have too, if he was alive to receive it. The trio uncovered numerous ways in which people make poor decisions without knowing it. Here’s a short podcast where Thaler tells a number of stories that bring behavioural economics to life. I wanted to talk about some of their findings (again) and apply it to watch collecting in some way.

Nudge – Improving decisions

I was reading this book by Richard Thaler and Cass Sunstein entitled “Nudge” – in the book they evaluate choices, biases and the limits of human reasoning from several perspectives. They tell stories about how they trick themselves to becoming victims of the very limitations of thought that they are describing. This is telling, because the very fact that these educated, articulate professionals can trick themselves (even though they know what is happening) demonstrates how tough it is to think clearly. We fall prey to systematic errors of judgment all the time – however, one of the ways of harnessing this issue is to help others make better decisions.