Behavioral Economics For Dummies
The guide to understanding why people really make economic and financial decisionsThe field of behavioral economics sheds light on the many subtle and not-so-subtle factors that contribute to financial and purchasing choices. This friendly guide explores how socialand psychological factors, such as instinctual behavior patterns, social pressure, and mental framing, can dramatically affect our day-to-day decision making and financial choices. Based on psychology and sociology and rooted in real-world examples,Behavioral Economics For Dummiesoffers the sort of insights designed to help investors avoid impulsive mistakes, companies understand the mechanisms behind individual choices, and governments and nonprofits make public decisions.Make realistic assumptions for economic analysis— investigate the assumptions conventional economics makes, and discover how behavioral economists introduce social, psychological, and cultural considerationsExplore the relationship between the brain and economics— understand how human behavior and surroundings affect economic phenomenaExamine the role of free choice in economic decision making— review the conditions that are necessary in order for people to make choices that reflect their true preferences, given the constraints they faceGet happy— recognize that factors other than wealth and money are critically important to a person's happiness, as defined by behavioral economicsLearn to:Understand how social and psychological factors affect our economic and financial decisionsGrasp how governments and experts influence our choicesAvoid making impulsive and uninformed decisionsAppreciate why ethics are important to our choicesOpen the book and find:The many subtle factors that contribute to our financial and purchasing choicesWhy people really make financial decisionsReal-world examples of how behavioral economics affects our livesWhat social and psychological factors affect our decision makingHow to use behavioral economics to be happierWhy government policies affect the economyHelpful consumer tipsGo toDummies.comfor videos, step-by-step examples, how-to articles, or to shop!