This week, we speak with Allison Schrager, co-founder of LifeCycle Finance Partners and author of “An Economist Walks into a Brothel: And Other Unexpected Places to Understand Risk.” Her work analyzes the world through a lens of risk-analysis =and management.
Schrager tells how her research led her to write a column on online prostitution which was based on her analysis of a dataset of 1.2 million transactions. That led her to the Bunny Ranch in Nevada as an economist analyzing risk and studying sex pricing. You may be surprised to learn that the Bunny Ranch has a negotiation training program, because all of their employees negotiate each of their transactions with customers, and do not know the market value pf these transactions.
Schrager explains how her Ph.D dissertation on retirement strategies found its way to Nobel laureate Robert Merton, who was working on financial modeling for shifting defined benefit plans into defined contribution plans.
You can stream/download the full conversation, including the podcast extras on Apple iTunes, Bloomberg, Spotify, Google Podcasts, Overcast, Castbox, and Stitcher. All of our earlier podcasts on your favorite hosts can be found here.
Next week, we speak with Nathan Sheets, head of Global Macroeconomic Research at PGIM Fixed Income.
Allison Schrager’s favorite books
Against the Gods: The Remarkable Story of Risk by Peter Bernstein
Just Kids by Patti Smith
Educated: A Memoir by Tara Westover