For roughly two decades, the new science of behavioral economics has been challenging what economists call “rational choice theory.” Rational choice theory described that primate species called Homo ...

Behavioral economics helps investors understand irrational market behaviors and customer choices. Examples of behavioral economic theories include loss aversion and sunk-cost fallacy. Recognizing ...

Irrational behavior is a part of human nature, but as MIT professor Ariely has discovered in 20 years of researching behavioral economics, people tend to behave irrationally in a predictable fashion.

For more than three decades, Grover Norquist has been pushing his Taxpayer Protection Pledge as if it’s the answer to every financial headache the nation faces. Last week he told a small Anchorage ...

I recently read an article by the Nobel Prize-winning economist Paul Krugman in which he described the renewed battle between so-called freshwater economists (so named because they are largely based ...

A Nobel Prize winning behavioural economist tackles some of the biggest issues facing Britain and explains why humans aren’t always rational. Show more How do human choices, biases, and behaviours ...

With the amount of messaging that inundates individuals on a daily basis, it can be frustrating for retailers to make their mark. Here is the problem: retailers spend a majority of their time and ...

Human beings are predisposed to make bad investment decisions. Our natural reactions will lead us to buy near the peaks and sell near the lows, which is not a good recipe for building wealth. Sure, ...

Behavioral economics combines elements of economics and psychology to understand how and why people behave the way they do in the real world. It differs from neoclassical economics, which assumes that ...