RationalRoseNOVA Official Website Mind Over Money. Mind Over Money. PBS Airdate April 2. Rational Rose' title='Rational Rose' />NARRATOR Does raw human emotion dictate your. Its a bitter scientific debate that has real world consequences. The. crash of 2. 00. A set of amazing experiments. Experiments. show our behavior is bizarre when it comes to money, but not everyone agrees. What happens when two powerful forces collideMind Over Money, right now on NOVA. ZACH BURNS University of Chicago Okay, whos ready NARRATOR Its an unusual experiment that challenges. ZACH BURNS Who. NARRATOR. BIDDER ONE One dollar. ZACH BURNS Do. I hear two dollars Whos got. BIDDER TWO Two dollars. ZACH BURNS Do. I hear three Three in the back. How about four You. BIDDER THREE Five. ZACH BURNS Six BIDDER FOUR Six. ZACH BURNS Seven BIDDER FIVE Seven. Rational Rose Enterprise v7. Reviewed by on Feb 28Rating. IBM2008107Rational Rose. IBM Software is designed to solve the most challenging needs of organizations large and small, across all industries, worldwide. I would like the man who raped and abused me to be put to death or imprisoned for life. That is not irrational. Help us make Anarchy great again Join us at Anarchapulco Make Anarchy great again Join us at Anarchapulco Casino magnate Steve Wynn said that gunman Stephen Paddock seemed like a rational man and was known to the staff. The billionaire CEO of Wynn Resorts was. NARRATOR The rules are simple. The highest bidder. BIDDER SIX Ten. ZACH BURNS Eleven Eleven. Twelve. Do I hear 1. BIDDER FIVE Thirteen. NARRATOR But theres a catch. ZACH BURNS Thirteen. Oh, thats great. NARRATOR The second highest bidder receives nothing but. ZACH BURNS Do. I hear 2. BIDDER SEVEN Twenty. Rational Rose' title='Rational Rose' />ZACH BURNS Twenty. NARRATOR Amazingly, two participants bid way above the. BIDDER EIGHT Twenty six. ZACH BURNS Twenty six BIDDER SEVEN Twenty seven. ZACH BURNS Twenty seven. Mind Over Money. PBS Airdate April 27, 2010. NARRATOR Does raw human emotion dictate your financial decisions, or are we rational calculators of our own selfinterestBIDDER EIGHT Twenty eight. ZACH BURNS Twenty eight How about 2. Twenty eight. NARRATOR So why would anyone pay more then 2. ZACH BURNS Twenty. NARRATOR A group of scientists, called behavioral. JENNIFER LERNER Harvard University It just popped, and now he starts again. NARRATOR They believe that when it comes to making. JENNIFER LERNER We see a variety of ways in which people depart. People are not using the information they say they should be. Im going to measure your skin temperature. NARRATOR The notion that people can behave. The. intellectual heart of this philosophy is here at the University of Chicago. This campus has given rise to more Nobel Prize winners in economics than any. Nearly all of them share a common assumption. One. of the great champions of this view is Gary Becker. GARY BECKER University of Chicago The most powerful theory we have, and I think. JOHN COCHRANE University of Chicago So what is economics Economics is a way of. NARRATOR University of Chicago professor John. Cochrane is another leading proponent of this rational model of economics. JOHN COCHRANE And how do we do it We start by thinking about people and by. What do they wantHow do. NARRATOR Its a model first revealed 2. Adam Smith, in his book Wealth of Nations. JOHN COCHRANE He started economics in a way that Newton and. Galileo started physics. He defined our field, in some sense, and came across. NARRATOR So what did Adam Smith mean by rational and. Take an average person in todays world. Hes. constantly calculating ways to increase his wealth. GARY BECKER Adam Smith basically said people are rational. NARRATOR Before he makes a purchase, he works out. Be it a cab ride or buying stocks, his. And, while he has emotions, they. For Smith, individuals. GARY BECKER He put it all together and he ended up with. I mean, you know, economists over the years have. Adam Smith really had the basic insight. NARRATOR Two centuries later, economics has evolved. JOHN COCHRANE Having understood behavior, having thought. NARRATOR And Smiths insights into how rational. JUSTIN FOX Harvard Business Review Starting after. World War II, you had to say it mathematically if you were going to be taken. Economics, from the very beginning, had been the study of rational. And it turns out. NARRATOR Today, these mathematical models are the. Behavioral. critics of these models believe they take Adam Smiths insights to an extreme. ROBERT SHILLER Yale University They represent people as doing immense calculations. NARRATOR The main model of consumer behavior assumes. ROBERT SHILLER What are you talking about What interest rate. I have in my head Thats the kind of thing that the models require that. NARRATOR Rational economists concede that people dont. EUGENE FAMA University of Chicago The way economics textbooks are written, they. JOHN COCHRANE Were not assuming that the people in the real. NARRATOR Behavioral economists like Richard Thaler. RICHARD THALER University of Chicago Booth School of. Business Defending. Yahoo Chat Mobile Application Download. Now, thats ridiculous. Lets take an easy shot, like this. I might be. able to make this shot, and an expert would make it. I can make it too, but lets. I want to put this ball in this pocket. Now, I know. the trigonometry Ive got to get the angles right and so forth. An expert. would have no problem with it, but for me, this is a pretty hard shot. Ooh Close Most. When people face hard problems. NARRATOR At the center of all the rational models. The idea is to keep regulation and. Wall Street. Rational. GARY. BECKER It lifted maybe a billion people out of real. I mean real poverty, but they had one dollar a day or two dollars. Thats real poverty. And it lifted those people above those limits. ARCHIVE AUDIO NEWS CLIP What in the world is happening on Wall Street NARRATOR Then comes the crash of 2. ARCHIVE AUDIO NEWS CLIP Investment traders say theyve never seen. NARRATOR The stock market drops over 4. ARCHIVE AUDIO NEWS CLIP The Dow traders are standing there, watching in. I dont blame them. ARCHIVE AUDIO NEWS CLIP Traders here, working the phones, say a lot of. Dow will go. NARRATOR. ARCHIVE AUDIO NEWS CLIP Lets talk about the speed with which were. NARRATOR Fourteen trillion dollars of wealth invested. Americans is destroyed. ARCHIVE AUDIO NEWS CLIP This has truly been a manic Monday on Wall. Street. NARRATOR Fear grips the markets. ARCHIVE AUDIO NEWS CLIP The stock market suffered one of its worst days. NARRATOR And financial experts are forced to imagine. ARCHIVE AUDIO NEWS CLIP We havent seen anything like this since the. Great Depression. NARRATOR. the global economy coming to a halt. LEO MELAMED Chicago Mercantile Exchange I shudder to think if all of that stopped. The. consequences are beyond imagination there would be hunger there would be war. ARCHIVE AUDIO NEWS CLIP Were having an electronic run on the banks. LEO MELAMED It would put the world back a hundred years, maybe. NARRATOR The chaos seems to undermine decades of. GARY BECKER Economists as a whole didnt see it coming. So. thats a black mark on economics, and its not a very good mark for markets. ARCHIVE AUDIO NEWS CLIP This market took five years to go higher its. NARRATOR With the crash, the rift in economics widens. ARCHIVE AUDIO NEWS CLIP We are talking about financial Armageddon. JENNIFER LERNER The crash really matters, because much of the. JOHN COCHRANE Im sorry, thats such an empty argument. Thats. just an insult, a pointless insult. EUGENE FAMA I dont see this as a failure of economics, but. Its fine. NARRATOR So which side is right Are we rational. ZACH BURNS Okay. NARRATOR Take the auction of the 2. ZACH BURNS Do. I hear one dollar BIDDER ONE One. ZACH BURNS How. BIDDER TWO Two. NARRATOR In the rational model, a person should never. ZACH BURNS SixHow about six BIDDER SIX Six. NARRATOR Paying more than something is worth cannot. Rational Radio With Dale Dudley With Dale Dudley. Weekdays 2 PM 3 PMAbout Dale Dudley Dale Dudley is a very successful radio host on KLBJFM for almost 3. He has recently joined the Newsradio. KLBJ team as host from 2 3pm. Dale is very outspoken when it comes to politics and social issues. He claims there is no side of an aisle for him but if he had to choose it would be fiscally conservative and socially liberal. Along with his knowledge and wild experiences he brings his values and opinions to our great station. Call Into The Show 5.