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.

Over the last 10 years, Behavioral Economics (BE) has become increasingly popular (see Google Trends chart below). According to BE, people’s economic decisions are often less guided by stable ...

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 ...

Behavioral economist Dan Ariely studies the way people make economic decisions. In his book, Predictably Irrational, he explains how the reasoning... Dissecting People's 'Predictably Irrational' ...

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 ...

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 ...