Misbehaving: The Making of Behavioral Economics
How Small Human Irrationalities Reshape Economics, Finance, and Daily Life
About This Book
Uncover the hidden ways your mind shapes financial, personal, and social decisions—often without your realizing it. By using vivid, unexpected stories drawn from daily routines, classrooms, casinos, and even national policy debates, you'll learn how 'supposedly irrelevant factors' like framing, loss aversion, and mental budgeting cause real-world missteps and surprises. Backed by landmark research and fresh examples, these insights will help you outsmart your own biases, challenge outdated assumptions, and make more rewarding choices at home, work, or anywhere stakes run high. Join the journey to see why being imperfectly human is not a flaw, but a superpower when understood.About the Author
Richard H. Thaler is a pioneer in behavioral economics, a field he helped create by exploring how real people's choices often contradict traditional economic theory. A professor at the University of Chicago and recipient of the Nobel Prize in Economic Sciences, Thaler’s work reshaped thinking in psychology, finance, and public policy. Renowned for his engaging storytelling, Thaler brings academic insights to life through relatable anecdotes, personal experience, and a healthy dose of humor. His approach has influenced leaders worldwide, helping them design systems and decisions that fit the realities—not fantasies—of human nature.
Biggest Takeaway
You'll gain practical mental tools to spot when your emotions hijack your decisions, from spending money and setting goals to negotiating, planning, and building habits. Recognize and overcome biases like loss aversion and the endowment effect, learn to create smarter systems and environments that support long-term goals, and build resilience in facing setbacks or complex financial dilemmas. By applying these lessons, you'll strengthen your decision-making, boost self-awareness, and increase your ability to thrive amid uncertainty—both individually and as a team member, leader, or policy influencer.
Key Insights from This Book
Explore the most important ideas and learn how to apply them in your life.
Why Framing Changes Everything: The Same Score Might Feel Like Failure or Victory
The Endowment Effect: Why You Overvalue What’s Already Yours
Mental Accounting: Why We Treat $100 Differently Depending on the Jar
Loss Aversion: Why Losing $50 Hurts More Than Winning $50 Feels Good
The Planner and the Doer: Why Long-Term Goals Get Sabotaged by Instant Gratification
Sunk Cost Fallacy: How Past Investments Trap Us in Bad Choices
Narrow Framing and Myopic Loss Aversion: How Short-Term Thinking Shrinks Big Rewards
Why We Ignore Supposedly Irrelevant Factors—and What It Costs Us
Why We Value ‘Fairness’—and Why Business Must Heed Emotional Reactions
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