I’m here in Singapore for a 2-week summer institute of behavioral economics/finance. Vince Crawford, Matthew Rabin, Ted O’Donoghue and Terry Odean are the speakers.
Some keywords that surface frequently in the discussions are “bounded rationality”, “market efficiency”, “human bias”, “anomalies” etc.
This reminds me of a joke:
An economics professor and a student were strolling through the campus.
“Look,” the student cried, “there’s a $100 bill on the ground!”
“No, you are mistaken,” the professor replied. “That cannot be. If there were actually a $100 bill, someone would have picked it up.”
That is probably the most famous joke about economists. The professor is certainly a believer of Market Efficiency.
Next watch the video:
What makes all passers-by to ignore the wallet? Are lay-people suddenly believers of market efficiency?