While classical economics is based on the notion that people actwith rational self-interest, many key money decisions—likesplurging on an expensive watch—can seem far from rational.The field of behavioral economics sheds light on the many subtleand not-so-subtle factors that contribute to our financial andpurchasing choices. And in Behavioral Economics For Dummies,readers will learn how social and psychological factors, such asinstinctual behavior patterns, social pressure, and mental framing,can dramatically affect our day-to-day decision-making andfinancial choices.
Based on psychology and rooted in real-world examples,Behavioral Economics For Dummies offers the sort of insightsdesigned to help investors avoid impulsive mistakes, companiesunderstand the mechanisms behind individual choices, andgovernments and nonprofits make public decisions.
- A friendly introduction to the study of how and why peoplereally make financial decisions
- The author is a professor of behavioral and institutionaleconomics at Victoria University
An essential component to improving your financialdecision-making (and even to understanding current events),Behavioral Economics For Dummies is important for just aboutanyone who has a bank account and is interested in why—andwhen—they spend money.