Okay, so it wasn’t really just the two of us – there were a few hundred others involved. Still, it was a very memorable evening that I think is worth sharing.
The day started innocently enough. I was heading out to Yale for a guest lecture in the MBA Marketing Research class taught by Jiwoong Shin as I have done for several Spring semesters now. I like this trip a lot as it allows me to catch up with many of my friends in the Yale Marketing Department. One of those is Shane Frederick and I had emailed him to see if he was around. He replied asking if I was attending Kahneman’s lecture. I had no idea that Daniel Kahneman, Nobel Prize winner and godfather of behavioral economics was giving a lecture there. The day was already getting better! I quickly changed my Amtrak ticket to a later time and told Shane I would come by his office so we could walk over.
My guest lecture went off very well with the students asking plenty of interesting questions. Then I had lunch with Zoe Chance who is doing some very interesting work with leading companies, applying ideas from behavioral economics. After a couple more meetings, I went to see Shane and we walked over early knowing there would be a big crowd. And we were glad we did, as the auditorium was overflowing by the time the lecture started.
Daniel Kahneman (Danny to his friends) was introduced by another notable person from Yale, Professor Robert Shiller (yes, he of the Case-Shiller Index you may have heard about during the housing crisis). Shiller talked about the widespread impact of Kahneman’s work, especially after the publication of his best seller Thinking, Fast & Slow. Trying to find Kahneman’s connections to Yale, Shiller pointed out that two of his coauthors (Shane Frederick and Nathan Novemsky, both in the marketing department) were at Yale.
And then it was time for Kahneman to speak. His humility, thoughtfulness, and eloquence came through pretty much from the first few words. He started by saying that he doesn’t do university speeches anymore since he is not actively doing any research (he is retired), but could not say no to Bob Shiller. Most of his recent speeches have been about his book, and there had been so many that as a consequence he seems to have forgotten everything else he ever did (laughter!). And that, he said, makes sense because as he points out in the book, we like things that are familiar (more laughter!)....