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Open Misbehaving : the making of behavioral economics
Misbehaving : the making of behavioral economics cover

Misbehaving : the making of behavioral economics

Thaler, Richard H., 1945-

35 pages80 min

This book chronicles the emergence of behavioral economics, challenging the traditional view of rational economic agents. It details the author's collaboration with Daniel Kahneman and Amos Tversky, introducing key concepts such as "Supposedly Irrelevant Factors," the endowment effect, mental accounting, and loss aversion. The narrative extends to self-control issues, financial market anomalies like investor overreaction and the equity premium puzzle, and the application of these insights to public policy. Through ideas like "libertarian paternalism" and "nudges," the book advocates for evidence-based economics that acknowledges human biases to improve real-world decision-making and welfare.