it is about 40 minutes. >> do professor dan ariely. what do you teach at duke? >> a few classes, in the a, a behavioral economics, psychology for economists and an undergrad class and every year i change that. one year, it was code listed in economics and literature and i ask the students to run an experiment in behavioral economic tour to write short stories using principles from behavioral economics. the big undergrad class, last year i taught the class with cathy davidson, trying to learn from students and very what i teach. >> host: what is behavioral economics? >> guest: the best way to think about it, a view of the human being as being perfectly rational. and look into the future, just information, always makes the right decision. these are assumptions, not something the economics test, just assumed that this is the case. puts people in different situations and you see how people behave. people behave in very irrational ways and systematically rational way of and we have different ways to do that so for example if you build the policy, you might have a par

dan ariely at duke university.or the day. 56 past the hour, bloomberg is "on the markets." here's alix steel. >> time for today's options inside. joining me for a take on the market action is mark, director of trading at swan wealth advisors. eems to keep setting highs, what is your read as an options guy? >> the vix is depressed at around 11 3/4 now. major look at the other indexes, the nasdaq 100 and 2000 --ly the rest especially the russell 2000, the picture is not as result. if you look at the rvx, the russell 2000 volatility index that has remained elevated -- the spread between vix and rvx. how unusualk about that is, does one wind up playing catch-up? >> if you look at the spread x, is usuallynd rv about two or three points. five is why, we are at six .25. either the s&p has to give away some games or the rvx has to have a nice rally. my bet might be able to both. at this point, with negative news out today, i think s&p volatility is due for some kind of intermediate pop. people should take you vantage of th

. >> host: we have been talking with dan ariely, duke professor, author of three books, the most recent is this one, "the (honest) truth about dishonesty: how we lie to everyone--especially ourselves". thank you, professor. >> booktv asks what you reading this summer? >> i am finishing up louise's latest book, she may have one after that but i would recommend it to anyone who wants to understand native american jurisdiction and perhaps one of the challenges the we have in terms of law and order on the reservations. she just writes with such a wonderful year. may i spend enough time in indian country and she catches it so well, very authentic and the valley of amazement, amy tan, i read anything she writes, she is a great author and i have a friend who has great concern about the privacy debate and she sends me lots of books and so actually i tried to go through some of the books being written about privacy challenges in america because i think those are the challenges we will experience over the next couple years in new legislating and trying to protect people's privacy but in a way tha