JamesSD
Back, at least for now?
- Joined
- Dec 21, 2004
- Posts
- 2,461
I love Behavioral Economics. In recent years they have shown through empirical studies with proper controls that humans frequently act against their own rational self interest. This has obvious large scale implications and seriously questions Rational Choice Theory, while at the same time makes for fascinating studies on small-scale choice behavior.
Dan Ariely's book Predictably Irrational http://en.wikipedia.org/wiki/Predictably_Irrational reminds me a lot of Freakonomics, in that it takes a look at real behaviors and uses science to explain why we often spend more money than we budget, or can be swayed to make irrational decisions by things like the word "Free".
Another book in the area I want to read is Nudge by Richard Thaler and Cass Sunstein, which suggests it is better to attempt positive change by giving the choice of good behavior rather than by sanctions against bad behavior. From a policy standpoint, it suggests that we can set up systems that encourage people to make free choices that are better for themselves and society as a whole. We can all be lazy, and setting up systems that make it easier for us to make the choices we would like to anyways (such as eating healthier) benefit us all in the long run, especially from an economics standpoint.
Dan Ariely's book Predictably Irrational http://en.wikipedia.org/wiki/Predictably_Irrational reminds me a lot of Freakonomics, in that it takes a look at real behaviors and uses science to explain why we often spend more money than we budget, or can be swayed to make irrational decisions by things like the word "Free".
Another book in the area I want to read is Nudge by Richard Thaler and Cass Sunstein, which suggests it is better to attempt positive change by giving the choice of good behavior rather than by sanctions against bad behavior. From a policy standpoint, it suggests that we can set up systems that encourage people to make free choices that are better for themselves and society as a whole. We can all be lazy, and setting up systems that make it easier for us to make the choices we would like to anyways (such as eating healthier) benefit us all in the long run, especially from an economics standpoint.
