Richard Thaler
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Appearances Over Time
Podcast Appearances
Or do you put them into an index fund?
Well, economic theory would say the fact that if there are no tax issues, the fact you got those shares from your uncle
If you wouldn't have owned a thousand shares of that company before, you shouldn't now.
Just put it in with all the other stuff.
No, not just keep it.
Diversify the way you would everything else.
Well, we'll not...
Make a value judgment quite yet.
Too pejorative.
Too pejorative.
You can say that.
But let me just add that notice one result of this experiment is people have a tendency to just stick with what they have.
So if they got a mug, they're much more likely to end up with it.
than if they didn't get a mug.
Yeah.
And it's that particular house.
So we call this status quo bias.
People have a tendency to just stick with what they have.
Transaction costs, but in the stock example, there are none.
The cost of changing 1,000 shares of Google into put that money into an index fund will cost you $10, right?