A great introduction to behavioral economics by one of the current leaders in the field, Prof. Dan Ariely. Ariely quickly explains some of the psychological underpinnings of emotion and rationality in economic decision making. He then ends with several every day ways we are predictably irrational and some quick pieces of advice to avoid these situations.
- What are the different starting points of classical and behavioral economics?
- What’s meant by behaving ‘rationally’ or ‘irrationally’?
- How do thinking and feeling play into how we make decisions? How does evolutionary psychology explain this?
- What piece of advice does Ariely give with his example of “free” stuff?
- What general advice does he give when deciding whether to have that chocolate dessert or going to the gym?
Keywords: economics, psychology, rationality, emotions, decisions, life skills,