There are cases when I can make myself better off by restricting my future choices and commit myself to a specific course of action.
Richard ThalerThe assumption that everybody will figure out how much they have to save and then will just implement that plan is obviously preposterous.
Richard ThalerLTCM lost money when Russia defaulted on a certain class of bonds, and then they had other investments like on the spread between two different kinds of shares of Royal Dutch Shell Oil Company. Now that seems completely unrelated to Russian bonds. But they were related because other hedge funds saw similar discrepancies and they were all making similar bets.
Richard Thaler