A brief history of Behavioral Economics...
2009-Jun-22 21:57 Dan Ariely's Predictably Irrational has topped my reading list for past two weeks, and I have found myself raving about his experiments and facinating conclusions to anyone who will indulge me. The foundation of Alriely's research is based on Behavioral Economics, which (somewhat radically) suggests that human beings are not so much the highly efficient benefit maximizers that traditional economic theory assumes, but rather a fickle and often irrational lot.
NPR recently published a terrific article describing the origins of Behavorlal Economics, its challenge to traditional economic theory, and its current application by proponents within the Obama Administration. This article along with works by authors like Ariely offer an exciting possibility to understand the choices that people often make that at the face of them appear irrational or inexplicable.
Reader Comments (1)
I'm loving Predictably Irractional. Thanks for the recommendation!
The best part is that his example are so actionable in every day life.