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Richard Thaler explains the fairness principle in markets using Uber as an example. He argues that if Uber charged $5,000 for rides during a crisis like 9/11, it would quickly go out of business due to public outrage. This highlights how businesses must consider psychological factors and customer perception, not just profit.

Richard Thaler explains the 'winner's curse' using a classroom auction of a jar of coins. The highest bidder often overpays, illustrating how competitive bidding can lead to irrational decisions. This concept was first identified by engineers at ARCO when bidding for oil leases.

Richard Thaler highlights the concept of 'mental accounting,' where people irrationally categorize money, affecting their financial decisions. This concept is widely applicable and often leads to irrational spending behaviors.

Nick Kokonas discusses the concept of mental accounting, where people irrationally treat money differently based on its source or intended use. For example, people often feel compelled to use a $30 dessert they paid for, even if they're full, because of the sunk cost fallacy.

Richard Thaler shares a story about how people are more likely to attend an event if they've paid for it, even if circumstances change. He notes that people will go to great lengths to honor a financial commitment, illustrating the power of sunk costs.