Great lecture! This was the shortest yet best conceptual breakdown of prospect theory and expected utility and their respective scientific roots I have seen. Please continue with these videos, they are awesome! :)

thank you doc!

This is AMAZING! Thanks so much!

You should read Armen Alchian's 1950 paper Evolution, Uncertainty, Economic Theory and Gary Becker's 1962 paper Irrational Behavior and Economic Theory, and Milton Friedman's 1953 paper The Methodology of Positive Economics. If you read all three of them, then read them again, knowing the arguments of the others, I am confident you will see what I have seen. What I see is a necessary and sufficient case that rational choice axioms are not required in order to get the standard results of supply and demand curves, so the answer is to discard rational choice axioms and expected utility theory, but keep standard microeconomics the same.

you helped me with my exam ... Thanks

Thank you so much, I wish I found this earlier and wish you could do a video on risk aversion as well.

Dr.Lace Padilla, Thanks for the great content , however , using the stock market is kind of confuse hence the stock market mechanism need to take account of, but I really like the pace and everything, will check out your other videos , and hope you would keep making videos like this, looking forward learning from you. have a good day.

This was really good. Thank you very much

I read Daniel kahnema is grad school "think fast and slow" and that really changed my view. In 1 of my class of econometrics we decided to see whether we could predict recession using econometrics. Turned out that it was not possible, you could get signal but you could not determine it with certain. The reason why you could determine it with certain was because of how irrational human can often when they make choices. So then we thought, oh it's because of what kahnema said :/

@spencerantoniomarlen-starr3069

9 ай бұрын

What subject did you get your graduate degree in? I also read Thinking Fast and Slow, or rather, listened to it on Audible. In fact, I listen to it three times, but I have heard on the podcast EconTalk multiple times that many of the psychology papers cited in that book have failed to replicate since the replication crisis. I don't know which ones though.

Hi, Thank you for a clear and easy to understand video. trying to understand the difference b/w utility and prospect is tricky.

this was so helpful and explained so clearly! thank you!

Well done ✅ the video is amazing to understand the logic behind these two theories

Thank you so much. very informative

Great Video

Hi Dr. That's a great lecture I have gone through. However, Am also looking at how expected utility theory and prospect theory would help understand the rational choice of students who bet on Sports and their studies

This was very useful! Thank you so much!

And so incredibly good-looking as well. PRomptly subscribed, and hope to come back often on my behav. economics journey. Many thanks.

Isn't that a relative increase of 100%, not 50%?

Thanks im having a hard time understanding the utility theory on thinking fast and slpw

I sold B stocks because it has a downtrend history

I chose selling stock B for tax purposes. If I sold A I’d have to report a gain instead of a loss.

@brucemcintosh1355

Ай бұрын

Sell 1/2 of A and 1/2 of B. The gain and loss canx therefore no tax. Still betting B will recover it's loss.