ERIM Invitational Conference 2005: Keynote Speaker Richard H. Thaler

For the past 30 years, Professor Richard Thaler has helmed a model of human behaviour that offers an alternative to traditional economic theories on human nature. It is a model which, drawing from psychological research, depicts human behaviour as marked by bounded rationality  that is, the idea that humans do not always make the most rational choice: the one that will maximize their welfare. Under Thalers leadership, the growing body of literature associated with this flexible model of human behaviour and biased decision-making, has become known as behavioural finance. It has produced sizeable inroads in traditional economic and financial theory, and found prominence in public debates around the world on issues like social security and pension schemes. It is effectively changing the face of financial and economic theory. More information can be found by using following URL: www.erim.eur.nl/portal/page