3701 - The Winner’s Curse and Other Anomalies (Shai Robkin)
Course Description
Instructor: Shai Robkin
Many trace the fascination to what we now call behavioral economics to a series of articles first published four decades ago entitled “Anomalies” by economist Richard Thaler (Nobel prize 2017). Those articles became the basis of the 1992 book “The Winner’s Curse,” which was updated this year by Thaler and fellow economist Alex Imas. Anomalies, in this context, come about as a result of real world empirical evidence that defies traditional economic theories. They occur when human nature confounds the rational assumptions upon which those theories were based and when powerful psychology forces interrupt what should be straightforward cost/benefit analyses. Why do people cooperate with one another when they have no obvious motivation to do so? Why do we hold on to possessions of little value? And why is the winner of an auction so often disappointed? We’ll explore these and other anomalies while examining their implications for public policy. No previous knowledge of economics or reading homework is required to understand and enjoy the class.
Bio: Shai is a serial entrepreneur. Born and raised in Atlanta, he moved to Israel in 1976 immediately following his marriage to fellow Atlantan, Judy Birnbrey. Following a career in international banking, Shai and Judy opened Israel's first combination bookstore/coffee shop in 1981. They returned to Atlanta in 1984 to care for aging parents, using the proceeds from the sale of the Israeli store to acquire Vernon, a manufacturer and distributor of library supplies. Vernon's technology division was sold in 2011 to One Equity Partners, a division of JP Morgan. Since then, Shai has continued to direct Vernon's operations while engaging in outside business consulting and education, including a position as the transitional leader of Conexx, the America Israel Business Connector.