Humans often act irrationally, making decisions—sometimes important ones—that contradict our best interests. This kind of irrational behavior is at the center of behavioral economics, and this free, ...

Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by ...

The roadmap to making meaningful change in your personal or professional life can be found in the discipline of behavioral economics. Historians trace the “custom of making new year’s resolutions” ...

Discover how behavioral modeling helps predict consumer actions using spending data, enabling businesses to refine targeting and enhance risk assessment.

In its early days, behavioral economics was focused on documenting human deviance from rational action. It began as a challenge to the mainstream neoclassical economics model, which assumes people are ...

In the late 1800s, one of the most enduring fictional characters of all time first appeared on the scene. No, I am not talking about Sherlock Holmes or Oliver Twist, but a less well-known though ...

Editor’s Note: Let’s play the ultimatum game. Here’s how it works: I give your friend $20. He has to share a portion of his $20 with you and can give you as much as he wants. If you accept the offer, ...

It is a bit difficult to say what criteria should be used to judge the success or failure of a research initiative on the scale of merging psychology and economics. Two reasonable criteria, at least ...

Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by ...

You've done everything—endured diets, purged your freezer of Ben & Jerry's, and educated yourself on fat, sugar, and calories. Yet, you can't manage to lose weight. What's wrong with you? According to ...

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