We recently mentioned in our Rational Roundup the Nobel Prize won by Prof. Richard Thaler. One of Richard Thaler’s key contributions to behavioral economics – and a reason for an increasing awareness of the latter as a field of research from the early 1980s onwards – is his work on what he labeled the endowment…
Imagine an auction for a dollar and the person with the highest bid gets the dollar. However, not only the person with the highest bid must pay the price, also the person with the second highest bid must make a payment. The auction starts at one cent and you will see the price increasing up…
… behavioural scientist Richard Thaler. Even if not directly part of the Alfred Nobel heritage, but established in his memory in the late 1960s and sponsored by the central bank of Sweden, the Sveriges Riksbank Prize in Economic Sciences is awarded at the same time and according to the same principles as the annual prizes…