Richard H. Thaler

Does the Stock Market Overreact?

ABSTRACT Research in experimental psychology suggests that, in violation of Bayes' rule, most people tend to “overreact” to unexpected and dramatic news events. This study of ma...

Further Evidence On Investor Overreaction and Stock Market Seasonality

ABSTRACT In a previous paper, we found systematic price reversals for stocks that experience extreme long‐term gains or losses: Past losers significantly outperform past winners...

THE RELEVANCE OF QUASI RATIONALITY IN COMPETITIVE MARKETS

SmartMy dad gave me one dollar bill‘cause I'm his smartest son,And I swapped it for two shiny quarters‘cause two is more than one!

Toward a positive theory of consumer choice

Fairness as a Constraint on Profit Seeking: Entitlements in the Market

Community standards of fairness for the setting of prices and wages were elicited by telephone surveys. In customer or labor markets it isacceptable for a firm to raise prices (...