How to improve the outcome of individual choices – the lessons of experimental economics

Vernon Smith, Nobel Laureate 2002

In this piece I intend to address five points which empirical research suggests might fruitfully shed some light on how we can improve the outcome of investment and savings choices. I shall begin by highlighting some basic principles of wealth creation, before going on to look at pension and savings policies, a brief comparison of baselines and outcomes, possible unintended consequences of the new savings policies and finally the question of how we can promote human betterment.

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