ECONOMIST, FINANCIAL TIMES and EVENING STANDARD BOOKS OF THE YEAR 2015 Shortlisted for the Financial Times and McKinsey Business Book of the Year Award From the rewned and entertaining behavioural ecomist and co-author of the seminal work Nudge, Misbehaving is an irreverent and enlightening look into human foibles. Traditional ecomics assumes that rational forces shape everything. Behavioural ecomics kws better. Richard Thaler has spent his career studying the tion that humans are central to the ecomy - and that we're error-prone individuals, t Spock-like automatons. Now behavioural ecomics is hugely influential, changing the way we think t just about money, but about ourselves, our world and all kinds of everyday decisions. Whether buying an alarm clock, selling football tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by ecomists. In other words, we misbehave. Dismissed at first by ecomists as an amusing sideshow, the study of human miscalculations and their effects on markets w drives efforts to make better decisions in our lives, our businesses, and our governments. Coupling recent discoveries in human psychology with a practical understanding of incentives and market behaviour, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioural ecomic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV quiz shows, sports transfer seasons, and businesses like Uber. When ecomics meets psychology, the implications for individuals, managers and policy makers are both profound and entertaining.
Richard H. Thaler is the Ralph and Dorothy Keller Distinguished Service Professor of Behavioral Science and Economics and the director of the Center for Decision Research at the University of Chicago's Graduate School of Business. He is the author of Nudge: Improving Decisions About Health, Wealth and Happiness.