#830: Nick Kokonas and Richard Thaler, Nobel Prize Laureate — Realistic Economics, Avoiding The Winner’s Curse, Using Temptation Bundling, and Going Against the Establishment

In this episode of the Tim Ferriss Show, Tim hosts a conversation with Richard Thaler, a Nobel laureate in economics, and Nick Kokonas, an entrepreneur, to discuss behavioral economics. The discussion begins with the fundamentals of economics and how traditional models assume rational, selfish agents with perfect self-control. They explore the origins of behavioral economics, including Thaler's early experiments and the resistance he faced from the academic world. The conversation covers various concepts such as loss aversion, fairness, nudges, and mental accounting, illustrating how these principles apply to real-world situations like retirement savings, restaurant reservations, and NFL drafts. Thaler shares anecdotes from his teaching experience and discusses the importance of stories in conveying complex ideas. The conversation also touches on the ethical implications of nudging and the challenges of changing people's minds, concluding with a discussion of Kahneman's work and Thaler's reflections on his career.