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The Winner's Curse

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Title: The Winner's Curse
by Richard H. Thaler
ISBN: 0-691-01934-7
Publisher: Princeton Univ Pr
Pub. Date: 10 January, 1994
Format: Paperback
Volumes: 1
List Price(USD): $18.95
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Average Customer Rating: 4.08 (12 reviews)

Customer Reviews

Rating: 5
Summary: How to make money in a pub?
Comment: How rational are human beings or how close to the economic models do they act? This book is a collection of articles by Professor Thaler which shows that we quite usually don't behave like theory predicts. Thaler's extensive research (the references are 30 pages long) gives The Winner's Curse a great academic foundation, but its maths that can be skipped and easy language makes the book acessible - and enjoyable - for every one that is just interested in Economics. To sum up, if you are studying or working with Economics, you should read this book. It will help you to be skeptical about the theory - just like every scientist should be. If you are reading it just by curiosity, it will enhance your skills when your are talking about the economy at a local pub. Actually, The Winner's Curse teaches you how to make money even in a pub. It worths the money. It's an excellent book.

Rating: 2
Summary: by an economist, for an economist
Comment: as an amateur economist grown increasingly dissatisfied w/ the failures of available theories, i was hopeful that this book would expound more on why markets fail. in some ways it did (in a very drab and boring language), although its coverage of financial markets (my interest) was all too brief and incomplete---the coverage of losers' outperformance of winners in equities was by far (IMHO) the best section of the book, but as good as that section was, the coverage of foreign exchange fluctuations was a failure. ---soros did a much better job of this.

there is some good material in this book, and i would give it 3 stars as a result, but the writing style makes it simply too inaccessible for the average reader. better financial market focus can be found in "reminisces of a stock operator" and "alchemy of finance", which really were accidental breakthroughs in behavioral finance (particularly the former--a gem of a book).

rhyno

Rating: 5
Summary: Intriguing for the academic mind
Comment: Most anyone will find this discussion of Thaler's (and his colleagues) work enough to whet their appetite for more on the subject. It is only a matter of time before you will find yourself digging up the academic papers behind the discussions. My only complaint: the supporting books by Kahneman and Tversky are expensive!

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