Malcolm Clark Mind Over Money

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Recommended: The impact of emotions on decision-making

The documentary Mind Over Money by Malcolm Clark attempts to explore the differences between rational and behavioral economists to try and see if emotions play a role in economics. By doing a series of experiment that concluded that emotions do have an effect on our decision-making skills.
The behavioral economist believes that people operate quite irrationally. People have impulses and habits that they cannot control, we buy things based more on the instant satisfaction of owning something without thinking of the future consequences of owning something now. Other times we make a decision because we think it's going to increase our wealth or to win like with the auction at the University of Chicago where they sold a $20 bill for $28. Another example is where researchers gather two groups of people, they show a sad film to half of the group without them knowing that it will trigger low-level sadness within themselves, then they ask them how much they will pay for a water bottle. The average price for people who watched the movie was $10 whereas people who …show more content…

To that Rationalist Eugene Fama says he doesn’t see it as a failure for economics because economists are needed as a scapegoat which is fine. Fama fails to explain why the crash of 2008 happened he just think thinks economist are the scapegoat for the failure but he’s not seeing how people were living in an irrational bubble investing and thinking that the value of houses would continue to boom and not collapsed. There’s has been way too many irrational financial market decisions throughout history to continue and say that human emotions don’t play a role any shape or form. In closing the behavioral economist’s theory that emotions influence economic behavior holds true and set directions for future research on the role of emotion in decision

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