Could I ever get you to pay me $28 dollars for a $20 dollar bill? Could I get you to pay more for a bottle of wine based on the last two digits of your social security number? Would you ever pay as much for a tulip as you would pay to buy a house?!
It is a normal assumption that people are rational when it comes to money. But (as those who rule the economy know), this is the farthest thing from the truth. You may want to tune in, because things are not always what they seem.
In the aftermath of the worst financial crisis since the Great Depression, NOVA presents “Mind Over Money”—an entertaining and penetrating exploration of why mainstream economists failed to predict the crash of 2008 and why we so often make irrational financial decisions.
The program reveals how our emotions interfere with our decision-making and explores controversial new arguments about the world of finance. In the face of the recent crash, can a new science that aims to incorporate human psychology into finance—behavioral economics—help us make better financial decisions?
Originally posted 2014-01-26 14:44:07.