Science unveils hidden drivers of stock bubbles and crashes: "'In standard economic theory, the way that prices in all markets are meant to be set depends on people being rational and having access to all available information,' says David Tuckett of the Psychoanalysis Unit at University College London.
'This way of looking at things is almost completely wrong,' he said. 'Markets are operated by human beings.'"
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This is worth reading. The people who really need to read it won't. That would be the libertarians and other free-marketer zealots who insist that we should model public policy on the assumption of rationality.
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