Krugman is a fan of Richard Thaler, winner of the Nobel Prize in economics, and speaks in favor of Thaler’s argument that real people often don’t act like the calculating robots of neoclassical lore. Thaler is right about that, but we’ve got a bunch of punchy responses to his more dubious claims — responses that are all the more fun to listen to because delivered before a live audience aboard the Contra Cruise!

Krugman Blog Post

“Rationality and Rabbit Holes” (October 10, 2017)

Related Links

“The Winner’s Curse?,” by Bob Murphy
“Bursting Eugene Fama’s Bubble,” by Bob Murphy

Related Episode (Tom Woods Show)

Ep. 1021 The Nobel Prize and Behavioral Economics: Anything Here for Austrians? (Gene Epstein)

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Tom and Bob have their own podcasts! Check out the Tom Woods Show and the Lara-Murphy Report.