A guide to the study of how and why you really make financial decisions While classical ecomics is based on the tion that people act with rational self-interest, many key money decisions like splurging on an expensive watch can seem far from rational. The field of behavioral ecomics sheds light on the many subtle and t-so-subtle factors that contribute to our financial and purchasing choices. And in Behavioral Ecomics For Dummies, readers will learn how social and psychological factors, such as instinctual behavior patterns, social pressure, and mental framing, can dramatically affect our day-to-day decision-making and financial choices. Based on psychology and rooted in real-world examples, Behavioral Ecomics For Dummies offers the sort of insights designed to help investors avoid impulsive mistakes, companies understand the mechanisms behind individual choices, and governments and nprofits make public decisions. * A friendly introduction to the study of how and why people really make financial decisions * The author is a professor of behavioral and institutional ecomics at Victoria University An essential component to improving your financial decision-making (and even to understanding current events), Behavioral Ecomics For Dummies is important for just about anyone who has a bank account and is interested in why and when they spend money.
Morris Altman, PhD, is a professor of behavioral economics at Victoria University of Wellington in New Zealand and a professor of economics at the University of Saskatchewan in Canada. He is on the board of the Society for the Advancement of Behavioral Economics and is a former president of that organization. He also edited the Handbook of Contemporary Behavioral Economics.