Behavioral Economics. A Practical Introduction to Decision-Making and Human Behavior in Economics - Eco, Mallu
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Document from the year 2024 in the subject Psychology - Industrial and organizational psychology, grade: A, , course: Behavioral Economics, language: English, abstract: This book provides an in-depth introduction to behavioral economics, explaining how psychological insights influence economic decision-making. It covers key theories like prospect theory, heuristics, nudging, and social influences on behavior. Written in a clear and engaging style, this guide is ideal for students, researchers, and professionals interested in understanding how human behavior shapes economic choices. The scope…mehr

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Document from the year 2024 in the subject Psychology - Industrial and organizational psychology, grade: A, , course: Behavioral Economics, language: English, abstract: This book provides an in-depth introduction to behavioral economics, explaining how psychological insights influence economic decision-making. It covers key theories like prospect theory, heuristics, nudging, and social influences on behavior. Written in a clear and engaging style, this guide is ideal for students, researchers, and professionals interested in understanding how human behavior shapes economic choices. The scope of behavioral economics is vast and touches on a wide range of domains, including finance, health, education, environment, and politics. By applying the principles of behavioral economics, researchers and practitioners can develop interventions that help people save more for retirement, eat healthier diets, reduce energy consumption, and make more sustainable choices. In recent years, there has been a growing interest in applying behavioral economics to public policy, leading to the emergence of a new field known as "nudge economics" or "libertarian paternalism." This approach recognizes that people are often influenced by default options, social norms, and other contextual factors, and seeks to design policies that nudge people towards better outcomes without coercion. One example of a successful nudge intervention is the "Save More Tomorrow" plan, developed by behavioral economists Richard Thaler and Shlomo Benartzi. This plan allows employees to automatically increase their savings rate each year, based on future salary increases. By leveraging the power of inertia and social norms, the Save More Tomorrow plan has helped thousands of employees save more for retirement, without requiring them to make explicit trade-offs between current and future consumption. In conclusion, behavioral economics is a rapidly growing field that offers a unique perspective on decision-making and human behavior. By integrating insights from psychology, economics, and other social sciences, behavioral economists can develop interventions that help people make better choices, improve well-being, and promote social welfare.