Source on Kahneman's "magical" behavior
From enfascination
I had trouble finding this on the internet, so here it is. pdf
Its important because Camerer and others have cited Kahneman's bewilderment at convergence in the market entry game, or what he calls the N* game. Besides summarizing the market entry results---in which psychologists are subverted by economics---he describes reluctance to trade and other cases of economists being subverted by psychology. The paper is short and sweet; full of lots of other good quotes. For example, he succinctly asserts a claim that Gode and Sunder fleshed out a decade: "Robots programmed to obey simple dominance would establish the optimal market price."
Kahneman, D., (1986) Experimental economics: A psychological perspective presented in Bounded Rational Behavior in experimental games and markets: Proceedings of the Fourth Conference on Experimental Econoimcs, Bielefeld, West Germany, Spetember 21-25, 1986. eds. R. Tietz, W. Albers, R. Selten published in Lecture notes in Economics and Mathematical Systems, Eds M. Beckmann and W. Krelle