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Fund Times

Thaler: How We Can Make Better Financial Decisions

Investors often 'misbehave' despite the theory of 'rational actors.'

In a perfect world of economic intelligence, Richard Thaler notes, we would all make decisions like the famous "Star Trek" character Mr. Spock, where nearly everything is carefully analyzed.

"But I don't know anyone like that," says Thaler, who calls these idealized Vulcans "Econs." Instead, we more often make decisions like Homer Simpson.