Losses and Real Player

The issue with Thaler’s results is in the experiments themselves. Hypothetical questions answered by students are about to produce perfect answers! Real decision-makers, however, may behave differently.

First, there is no real money involved in those games. True decision-makers, accountable for gains and losses of real money, are only a minority of the population who might respond to such experimental questions. Therefore the sample may not even represent the right crowd.