PBS program NOVA had an interesting program this week called "Mind Over Money". It compared the belief of the free market economists like those at the University of Chicago who believe in the "Rational Theory" of Economics, versus the work of "behavioral economists", who study why individuals don't behave rationally. The show opens with an auction of a $20 bill that sells for $28....and the auctioneer wasn't even a decent auctioneer! This fascinating show is well worth your time, and it is amazing that the Chicago guys stick to their guns, despite the fact that it is clear to anyone who lives in the real world that they are dead wrong. And people wonder why Macro Economists are always wrong!
Watch this video HERE (sorry, it won't embed).
Oh, and thanks to Kip for making me aware of this!