The best behavioral economics of 2014 movies

Legal scholar Cass Sunstein presents his annual list of the movies that best showcased behavioral economics for 2014.

Best actor: In 1986, behavioral scientists Daniel Kahneman and Dale Miller developed “norm theory,” which suggests that humans engage in a lot of counterfactual thinking: We evaluate our experiences by asking about what might have happened instead. If you miss a train by two minutes, you’re likely to be more upset than if you miss it by an hour, and if you finish second in some competition, you might well be less happy than if you had come in third.

“Edge of Tomorrow” spends every one of its 113 minutes on norm theory. It’s all about counterfactuals — how small differences in people’s actions produce big changes, at least for those privileged to relive life again (and again, and again). Tom Cruise doesn’t get many awards these days, or a lot of respect, and we’re a bit terrified to say this — but imagine how terrible we’d feel if we didn’t: The Top Gun wins the Becon.

(via @tylercowen)

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