Cochrane's Rebuttal to Thaler - On Target

Here is a link to John Cochrane's rebuttal to Richard Thaler (the famed behavioral finance advocate).

I think that Cochrane is right and that Thaler and his cohorts over-generalize the results of their behavioral research.

One problem I have with the behavioral research crowd is that they generalize behavior in unrealistic research environments to more complex real life situations - sort of like sampling one population and claiming that the estimated characteristics then apply to another population.  Game behavior does not necessarily indicate what people will do in real life situations.