YouSaid · the spoken record

Cass Sunstein

lines on the record: 98
first: 2023-08-18
most recent: 2023-08-18
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Well, I wish I'd known about the horror of sludge understood as administrative burdens, waiting time, long forms, in-person interview requirements, things that make it so that if you're kind of doing well in life but you need help in one kind or another, it's really hard to get it. Or if you're struggling in life, let's say you're old or you're sick or you're poor or you're struggling, you're lonely, the various administrative burdens we impose on people, they are like a wall that's our society. Take down that wall, Mr. Whomever.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Find things you love and focus on them because even if you don't succeed spectacularly, at least you will have loved not succeeding spectacularly. And if you focus on the things you really enjoy and love, the chance that you'll succeed skyrockets.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And I reread it every few years and it's completely great. Reading right now John Stuart Mill's The Subjection of Women, which because I'm writing about liberalism as a political theory and where it came from, and Mill on Equality and Liberty is Relevant, let's say”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“I would single out a recently deceased law professor named Lloyd Winreb. Who taught a course at Harvard on law and philosophy and undergraduate course, which I took on a kind of flyer, and it alerted me to a world. I had no idea it existed. So I would single out Lloyd Weinreb.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“A show on Netflix called Vortex, which I love, love, love, love. It's French. It's about time travel. And it's about romance and it's about the economy and it's about heroism and it's about... The future and the past, and it's not to be missed vortex.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“He really did shift, and he wrote me a note saying he shifted. In the early days, Thaler and I gave a talk at Chicago in which he was fiercely skeptical and he wrote about behavioral economics in a way that was full of dismissiveness, and he ended up being, I think the word a convert is accurate, and that's because he thought the evidence supported it.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Is efficient. That's how he made his reputation. I don't think that survived, but it's not crazy false. It's not wildly inefficient, and it's pretty efficient. So I think that was a fundamental contribution. His kind of Chicago-ish skepticism about the role for government regulation and such, I think that was really a third order idea, the more fundamental is think about the consequences. I don't know what to think about recantation by him. It may be that just under the spell of a horrible economic downturn, he thought there were some things I thought that weren't right, but more fundamental was his focus on evidence and data than his thinking that I am a Chicago school person. And on behavioral economics, my own focus,”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think the largest contribution Posner made was to think what are the consequences of law for people and how can we be empirical about that. So was the law contributing to well-being? Is it leading to economic growth? Is it destroying wealth? Is it helping consumers and investors or is it hurting them? And that insistent focus on one of the consequences of law, that was for me then, and I'm smiling now. It was like a breath of fresh air. When I was in law school, we never asked about that. We asked, what was analogous to what? And Poser just said, what does this mean for people in a way that had no sentimentality to it? It had numbers. And that's amazing. Then there was the idea that the common law is efficient. So he thought the law of private property, contract and tort in England and America just.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“It was very good. So early on. A giant and he was very skeptical of some of the things I thought, but he was very engaged and very collegial. So it was all substance, not personal. And I just learned so much from him. His comments on my papers, which he thought were bad papers, were instructive comments, and they made them less bad papers, engaging with his thinking was a gift to me. And I think as skeptical as I was of maybe 90% of what he thought, I ended up agreeing with maybe 40% of what he thought. And he wouldn't want to think of himself as a mentor of mine, but he was.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Very often. And I think that's great for a great artist writer. But this was a private conversation where he had no stake in anything. But we argued a little bit. I thought this is pretty surreal that I'm telling George Lucas about the genesis of the Star Wars movies and I'm believing myself rather than George Lucas. And that might have been motivated recently.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And I said, Don't you know you're talking to? I wrote a book on this. I know how much work you put on the prequels. And he smiled. And then he described one of my alleged mistakes. And I'm not going to disclose what it was because that would be violating a confidence. But I don't believe it was a mistake at all. I think he was retrofitting something in the genesis of the Star Wars movie.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And I thought, oh my God, what's going to happen? And then he paused and he said, without any sense of pleasure, he said, I liked it. And then he said without any sense of pleasure, no smile. He said, it's good. Then he paused and said with no smile at all, he said, you got what I was trying to do. And then he paused and he said, start to smile. He said, But the other books on Star Wars, they're terrible. And then he got a big smile and got really happy. And he said, and you made mistakes. I loved him so much that he wasn't going to flatter me. He wasn't going to say anything. You know, you wrote a good book. But he was as nice as he could be. And he has become a friend. And we talked a bit about the book. And he said at one point, you have no idea how much work I put into the prequels.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I thought he wasn't walking fast but steadily, and I thought, please God, let Harrison Ford be right in back of me. Please, God, let someone whom he knows me in back of me, please God let him not be walking toward me. But he's continuing to walk toward me. And it's about 200 yards, and now he's 150 yards away. Now he's 100 yards away. And I thought maybe I can be like some character in Star Wars where I can make myself meld into the floor. This is not the law professor you're looking for. I thought, can I do a mind trick so he doesn't know it's me? Or can I make myself really tiny or can I make myself pure liquid? But he's walking toward me. And then he said the most terrifying words I've ever heard from a human being, which is he said, I read your book.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Christian book about freedom, and this is what makes it, I think, transcendent. My story is that after I did the book, the one person who I was most terrified to see was George Lucas, whom I knew a tiny, tiny, tiny bit. And I was at a big event with maybe 300 people. And there in the distance was George Lucas. And he started walking toward me. D-Line.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“America exclamation point. Star Wars is similar. It's art. It's not social science. And as between art and social science, at least my current mood, I go for art. And I love them both. But Lucas is an artist. And it's his soul that's speaking. And I don't know how conscious he was about this, though I can tell you a little story if you want. Go ahead, sure. Okay, so freedom is the theme. Darth Vader, who's the worst person in the universe, maybe the second worst, at the crucial moment exercises his freedom because he believes that saving his son is more important than fidelity to the emperor and he sacrifices everything. That's his choice and that saves him. So it's in some ways a spiritual even a”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, Thaler and I were very focused on preservation of freedom and continue to be. And some of our friends on the left are mad at us because we're pro-freedom. That's probably a self-serving way to describe it, but I'm sticking with it. The thought of some of our friends on the left is that we need much more in the way of coercion and mandates. And of course, they have a role. But Thaylor and I are very big on investor freedom, consumer freedom.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Completely. I love Derek Thompson's book, and I think that's a fantastic example. So one way to think about it is that the phenomenon of power laws is highly relevant to success and failure, where we tend to think of things as linear with respect to growth, but that's not true for video games. It's not true for films. It's not true for novels. It's not true for art. It's a power law. This is very slightly technical for yours truly the English major, not technical for you, the math guy. But if we understand the phenomenon of power laws and how they work, then we'll get real clarity on spectacular success, including that of Star Wars.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“To Taylor Swift. So this is all around us. And there are people who are not like George Lucas or not like Taylor Swift or not like the Beatles who maybe were about as amazing, but something didn't happen for them and we've never heard of them or we will hear of them. Day after tomorrow.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Because everyone was going to see Star Wars, and that happened early on so that people thought not to see Star Wars is to miss out. It's like, who do I think I am on this earth not to go see Star Wars? I remember that, by the way. And that wasn't because it was fantastic, though it was fantastic. It was because other people thought it was fantastic. Taylor Swift is a current example. I think Taylor Swift is completely amazing, but her amazingness does not account for the fact that she's so famous. It's that people love her. And even people who don't love her are interested in her or pretend to love her. I'm here to say I'm not pretending to love her. I really loved her. I thought her music was great even before she was quite what she is now because Neil Young, who's one of my heroes, said Taylor Swift is the real deal. And I thought I have to listen.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And Jane Austen may be the most beloved novelist, was not thought to be the greatest novelist of her time. She wasn't thought to be the greatest female novelist of her time. How she became Jane Austen is a very complicated story. The story of John Keats and Jane Austen is across generations, I think the story of the Beatles and Star Wars within a compressed period where something catches a wave. Now it has to be great to catch a wave if it's just someone who doesn't know how to surf. They're going to fall. So it has to be great. But what happened with Star Wars, you can talk a bit about the merits, but I think what really happened was social influences, which is not to diminish the amazingness of the Star Wars movies, but people wanted to go see Star Wars.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And the Beatles themselves said, you know, we're in big trouble. We can't get a record deal. They became the Beatles. Did they come close to failing? Maybe. Okay, so clearly you're right. You need quality, but consider the following fact that John Keats often thought to be the most beautiful poet English language died at the age of 25. He was very ambitious. He thought he failed, and he put on his grave something like He Whose Life was written in water.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Has to be great. So, another example I'm writing a book right now called How to Become Famous, and it's about exactly this. And it was inspired by the Beatles, where the Beatles, everybody turned down to the Beatles. They wrote letters to Brian Epstein. The Beatles Guy agents saying the boys won't go.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Thank you for that. And, you know, he did something incredible. So it had a foundation, but he also benefited from a lot of serendipity. That helped.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Completely. And one thing is that success breeds success. The other thing is that it's amazing. So the George Lucas ones especially, I say, apologies, Disney people.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And we watched it together. And I thought, you know, I like Star Wars. At that point, I wasn't crazy about Star Wars. And I thought, what is it about Star Wars so that my young boy would go nuts for it when it's a long time ago? And so I got focused on its enduring appeal. And then I thought the idea of writing a book about it was too crazy not to go forthwith. And no publisher for a long time had even a little bit interest in it. Really? So I almost thought I was going to publish it myself as a something. I talked to my literary agent about publishing it myself, which I've never done before because I enjoyed it so much. And then at the last minute, a prominent publisher thought, we'll give this one a try.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Were you when you were on social media? Were you when you were at work? How were you when you were commuting? And the results are pretty credible. People really don't like commuting and they really do like, let's call it intimate relations.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And these are crude because it might be that if people had a really good date the night before, they'll say, and so, but there is stability on these things and there are within nation differences that are interesting and seems to be telling us something. So there's a lot of work on whether life satisfaction is kind of crude but directionally informative, I tend to think yes. And then there are things in between where you ask people at the end of the day, and Danny Kahneman has pioneered this called the Day Reconstruction Method, you ask people, how were you? This is less demanding for the experimenter than trying to ask people every second, how are you? And if you ask people that enough, they're going to say, I'm really irritated because you keep asking me how I am. So Conneman asked at the end of the day, how were you when you were taking care of your kids?”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Let's consider three things, shall we? Efforts to measure people's experience in real time, so like on a scale of one to ten right now, I'm approximately 10 because I'm really enjoying talking to this, talking about this. I find that 10, of course I would, but I find people's answers, how happy are you right now? How anxious are you? How stressed are you? How angry are you? Angry zero stressed me right now, two, anxious me right now one. And these are all credible in real time. That's one way of doing it that seems pretty good at getting how people are if people are in the midst of dealing with a really angry and difficult young child. People will give answers really not having a great time right now. And that's credible about their emotional state. How satisfied are You with your life.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Humans, yeah, it's in the direction of that, what I did. Then the percentage of people who embrace the algorithm jummatically. And if you tell people things about the human alternative, like this is a doctor who's been a specialist in this for 30 years, then the interest in the human being increases significantly. So the direction of the results in the survey about which you would rely is consistent with thinking people are attentive to whether the algorithm is just a thing or whether it's got a terrific data set and whether the person is just a person or someone who has 30 years of experience in the vacation sector, let's say. And it's top of mind for me because I'm working on it now seems instructive and TBD. This might be a book in the fullness of time. I would expect nothing less with respect to... Happiness”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“That's also a fantastic question. I'm doing surveys right now that is right now on whether people like algorithms. And so I'm asking people, would you choose an algorithm or a person with respect to an investment decision or an algorithm or a person with respect to a vacation? Where are you going to go? Or an algorithm or a person with respect to health decisions? And I'll tell you what makes me think that the very preliminary results you're going to be the first person to hear it are not useless, that if you tell people things about the algorithm which give people clarity on the data on which the algorithm is relying and like there's a lot of it.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Does do cost benefit reports, cost and benefits of regulations, and we added stuff on happiness, on subjective well-being. The UK government, they're very concerned about this, and I do think it's an important field of endeavor to try to figure out are people thinking life is great or is it not so great and is that translated into depression and anxiety, et cetera?”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And it's important to say that day-to-day happiness is really important, but it isn't everything. Now, with the surveys suggesting that some people and some populations, maybe America, is less happy now than it was at a certain point. I don't know whether it's an expressive statement that pandemic time, terrible or political polarization. I'm not liking that, or whether instead it's actually my life isn't so good. So I don't think we've gotten to the bottom of what the data actually shows about the happiness part. If it is the case that people actually are less happy, if that's true, that's a very serious not good thing. And we want to figure out why. When I was in the White House under President Obama, we did as the government always did.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“It's a fantastic question. Day-to-day experience are people thinking that was a great day. Monday was terrific. Tuesday was good. Wednesday not so much. That's one thing. The other is not day-to-day experience, but what kind of lives are people having? Are they going to the doctor a lot? Are they learning? Are they being treated with respect? People care about two things that happiness doesn't capture. One is how meaningful their life is, and the other is how much psychological richness, or let's call it diversity in their life they have. So they might have a meaningful, happy life, but they might be doing the same thing over and over again. People don't like that. A lot of people don't like that so much. They want to do something else. So happiness, meaning, psychological richness.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Admirable, of course, and if it also is for you like wine, hooray. No, of course we'd want to say, I think, that maybe a little more in the way of good works and a little less in the way of wine is a good thing, but that's a buzzkill on my part. And the point of this part of the book is when we're making about decisions about decisions, think about what makes life fabulous. That's really important. And I think the behavioral types, including yours truly, often may be overweight a little bit. What makes life long and underweight a little bit? What makes life fabulous? So the first generation of behavioral work is really healthier, wealthier, safer. More prosperous, and those are really important. But also kind of better days. And both Lair get drunk. He's all over that.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so that's from a poem by Baudelaire, which is the improbable spirit guide of the book. And the title of Baudelaire's poem is Get Drunk. And that for law professor to celebrate a poem with that title is a little unlikely, but I'm going to own it, where what Bodelier says by Get Drunk is basically take life by the horns and be thrilled by it. And there's also something about human diversity, that what makes you get thrilled may be wine, good, don't overuse it, but go for it. If that's what gets you thrilled, or if it's poetry, go for that. Or if it's virtue, good works.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“So it might be that policymakers can put on people's view screens things that they're not thinking about. So let's say you're buying some product and that their add-on fees of various kinds that are findable but not really there and people aren't thinking about them to put those add-on prices on people's view screens is a really good idea for companies actually to do that and use competition to promote fuller clarity on the part of consumers. That's a really good idea. I think for securities, the securities laws, there's a lot to say about them. But insofar as they're trying to prevent people from falling victim to present bias or limited attention or unrealistic optimism, That's an extremely worthy goal”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“That's fantastic. So the only exception to Kahneman's phrase, nothing in life is as important as you think it is when you're thinking about it, is that statement. That statement is as important as it is when you're thinking about it.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Make this unprecedentedly doable. I've worked with private sector entities which are trying to use behavioral stuff to improve outcomes for their customers and their investors, and that's fantastic, but there are others who are trying to improve outcomes for themselves, which is also fantastic, but not if it's at the expense of the most vulnerable.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“So you might use present bias to try to get people to buy some product where the long-term economic effects are horrifying, though the first week is going to be pretty good, or you might get people to buy some product where you'd have to be crazy optimistic to think it's a sensible thing to do because the risks associated with it are horrible. Or, and I think this is the most fiendish of all, you might use people's limited attention to get them, let's say, to opt into something, which is going to be really hard to opt out of. And once they've opted into it, they're stuck with something that's going to be very expensive and not beneficial. So the manipulation of people, we're just talking about the economic sphere right now, poses a very serious challenge and social media, et cetera.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“This is a fantastic question. And here's something over the last maybe 15 years. When Dick Thaler and I started working on nudges, we were and we were Maine very upbeat about the potential use of GPS-like things to help overcome people's biases. When I say GPS-like things, I mean a GPS device, it's a nudge. It helps you get you where you want to go. It gives you the best route. If you don't like what it says, you can ignore it. So it's completely freedom producing or freedom maintaining. There are other things like a package that says this has shrimp in it. I'm personally allergic to shrimp, so hooray for that disclosure. Or you can have something that tells you a warning about side effects and they might be relevant to your choice. These are all nudges. Okay, and they are designed to help people deal with their cost.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, the most fun of these kinds of studies is if the judge's football team won over the weekend, the judge is more lenient on the next day than it's the favorable football team lost.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Completely, completely, and then the lion will eat that other person who is profoundly to be hoped is not a dear friend. So optimistic bias can create problems. So we might think that given unrealistic optimism with respect to medical decisions, we're just going to rely on the doctor. That's one thing you might do. Or you might think if you're a judge, you might think I'm prone to mistakes with respect. This might be the future. I'm prone to mistakes with respect to dealing with certain kinds of people. Let's call them criminal defendants and sentencing. It might be biased against one group or another. I don't even know. I'm going to rely on the algorithm.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“You ought to think I can really run. That's optimistic. It's probably unrealistically optimistic. Or just run faster than the”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so one bias is present bias where today really matters and the future is a foreign country called Laterland and we're not sure we're ever going to visit. And that actually has roots in the brain present bias. And we know if we're making investment choices, if we think what we want to really maximize is wealth this week that's probably dumb. It's going to produce a lot of problems. This is your field, of course. And we might decide we're just going to adopt a rule for investments, which will counteract our own present bias. Or we might think in state government, let's say, that unrealistic optimism is part of the human species. Thank goodness for that if you're being chased by a lion, you ought not to think the lion's faster than I am. I'm going to die soon.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Was how do we decide whether to acquire information? How did we decide what to believe? How do we think about algorithms? How do we think about freedom? And these questions, which are all basically part of the same thing, were stirring around in the head. And I kind of figured out at least provisional responses to the questions in the course of the book.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“We might decide who's an expert, I'll trust the expert. We might decide, I'm not going to marry her, I'm going to live with her. That's like a really small step. We might decide that, you know, I'm just going to opt where it's not about flipping a coin. It's not like picking flipping a coin. It's like I'm going to do something really big, like jump over a chasm. Or it might mean we might think that we're going to adopt a rule, no liquor ever, except maybe Saturday night. And if you think about business decisions, each of these strategies is used all the time, sometimes deliberately. The head of a company will say, here's our rule, or we'll say if we're stuck, we're going to go to this person, or we'll say, you know, it's a coin flip. And we're not as disciplined sometimes as we should be in thinking about these, but that's the basic framework. What I hadn't thought through.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the fundamental idea which was developed in a paper with a philosopher named Edna Oman Margalit is that we have an identifiable set of strategies. It's going to be very intuitive when we're stuck. So we might flip a coin.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“And I thought there should be a book on this, and I co-authored a paper on it in the 1990s, but I never figured it out until yesterday.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“Why so long? It's a slow burn. This book is a slow burn. So I thought the idea of how we decide how we decide, it's one of the most fundamental things of all.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source
“That's fantastic. That's a great example. And something like that is happening for non-political issues, for economic choices, for investment decisions. And it happens really fast. So you can see a flood of movement towards something or away from something just because people think that other people are joining that flood.”
2023-08-18 · Masters in Business · Cass Sunstein on Behavioral Finance and Wealth · IDENTIFIED FROM THE TRANSCRIPT · source