<p>In the later part of the 20th century, a pioneering group of economists started shaking up their academic field.</p><p>These “behavioural economists” used findings from experimental psychology and everyday life to challenge the prevailing view that human beings were rational decision makers – acting in predictable ways to maximize their wealth.</p><p>One of those pioneers was Richard Thaler, who noted down some of these “anomalies” in a column in the 1980s, which was turned into a book - The Winner’s Curse - first published in 1992. His work also won him the Nobel memorial prize in economics in 2017.</p><p>More than 30 years on, he has returned to that book, publishing a new, updated version with co-author Alex Imas, which looks at whether those anomalies in rational thinking have stood the test of time. </p><p>Tim asks him to set out two of his most famous ideas – the winner’s curse itself, and the idea of “mental accounting”.</p><p>Presenter: Tim Harford
Series producer: Tom Colls
Sound mix: Donald MacDonald
Editor: Richard Vadon</p>
