Nudge

Nudge

Improving Decisions About Health, Wealth, and Happiness

Richard H. Thaler, Cass R. Sunstein

As Yale economist Robert Shiller has shown, the best explanation of the real estate bubble greatly overlaps with the best explanation of the stock market bubble of the late 1990s: In both cases, people were influenced by a process of social contagion. This belief produced wildly unrealistic projections, with palpable consequences for home purchases and mortgage choices.

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