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Richard Thaler on behavioral economics, investing

Richard Thaler, an expert on behavioral economics as well as the psychology behind decision-making, explains how the average investor can use the science to develop winning strategies.

The University of Chicago Booth School of Business professor is the author of many books, including his latest, "Misbehaving: The Making of Behavioral Economics." He co-authored the best-seller "Nudge," in which he applies behavioral economic concepts to provide solutions to society's major problems.

Apart from his academic endeavors, Thaler's stock-picking principles drive the Undiscovered Managers Behavioral Value Fund (Ticker: UBVAX), which is up 78 percent in the past five years, compared with a return of 64 percent for the S&P 500.

Here are some of the other topics discussed during the strategy session hosted by CNBC's Dominic Chu:

  • What behavioral economics is and how investors can use its principles to his or her advantage.
  • The best course of action for most people to save for retirement.
  • The one mistake Uber is making when it comes down to fair pricing, and what the transportation start-up should do instead if it wants to retain its consumer base.
  • Investment philosophy behind the Undiscovered Managers Behavioral Value Fund, and its strong performance.
  • The single worst thing the individual investor can do.