Richard Thaler
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Appearances Over Time
Podcast Appearances
Okay?
So half the people are buyers, half of them are potential sellers.
So the mug's worth will be determined in this market.
Okay.
Now, what does economic theory say?
It says the value you put on that mug should not depend on whether it's sitting right in front of you or on the desk next to you.
Right?
Mm-hmm.
Well...
It turns out, so the mugs are distributed at random.
What we should see is let's rank the people from highest to lowest on how much they liked one of those mugs.
The half that liked mugs the most should end up with them.
Right.
Okay.
So about half the mugs should change hands.
Well, then it doesn't depend on- Or a randomized value.
We did randomize.
Okay.
Right?
They were handed out at random.