Behavioral Economics

Behavioral Economics is a field that deals with the human decision-making side of economics. We are interested in the area that looks at the psychological factors at play as we make choices.

This area is fascinating as it points out our decision biases and irrational behavior applied to making choices in our own lives. Also, many businesses and organizations create choices for others through their products and services, so learning more about how the structure of those choices (a.k.a. choice architecture) impacts the decisions people make can be very useful.

• Nudge: Improving Decisions about Health, Wealth, and Happiness by Richard Thaler and Cass Sunstein looks at how to design choice environments that nudge us in beneficial directions.
• The Paradox of Choice: Why More is Less by Barry Schwartz is about why more choices aren't making us happier.
• Predictably Irrational: The Hidden Forces That Shape Our Decisions by Dan Ariely looks at all the ways in which we do not act in our own self interest.