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Keen Behavioural Finance 2011 Lecture01 Economic Behaviour Part 2

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Uploaded by on Aug 3, 2011

In this second half of the first lecture, I explain Sippel's result that most people aren't "rational" as Neoclassical economists define it--because the Neoclassical definition of rational behavior is computationally impossible.

The next lecture--which I'll post next week--explains that even if the Neoclassical model of individual behavior was sound (which I've just shown it isn't), the market demand curve derived by aggregating the demand functions of "rational utility maximizing individuals" could have any shape at all. The "Law of Demand",a cornerstone of Neoclassical thought, is false.

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Uploader Comments (ProfSteveKeen)

  • Professor Keen,

    Ballard 2000. What is Ballard's full name and what is the title of his 2000 paper?

  • @dilorybark Ballard, D. H. (2000). An Introduction to Natural Computation. Cambridge, Massachusetts, Bradford, MIT Press.

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  • Your recent "Debt Britannia" should be written on papers that are stuck to every lampost in Britain for a month.

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