Economists think about what people ought to do. Psychologists watch what they actually do.

Policy makers, like most people, normally feel that they already know all the psychology and all the sociology they are likely to need for their decisions. I don't think they are right, but that's the way it is.

We can't live in a state of perpetual doubt, so we make up the best story possible and we live as if the story were true.

Most successful pundits are selected for being opinionated, because it's interesting, and the penalties for incorrect predictions are negligible. You can make predictions, and a year later people won't remember them.

The experiencing self lives its life continuously. It has moments of experience, one after the other.

In strategic decisions, I'd be really concerned about overconfidence.

Economists think about what people ought to do. Psychologists watch what they actually do.