In "Misbehaving: The Making of Behavioral Economics," Nobel laureate Richard Thaler takes readers on a riveting journey through the evolution of behavioral economics, a field that challenges traditional economic theories. Thaler candidly shares his experiences and groundbreaking experiments that reveal how human behavior often defies rational expectations, leading to surprising choices in everyday life. With a blend of humor and keen insight, he highlights the quirks and biases that influence decision-making, reshaping our understanding of markets and policies. This enlightening narrative not only unveils the complexities of human behavior but also emphasizes the importance of incorporating psychology into economic thinking. Dive into a world where misbehavior leads to profound revelations about the way we live, work, and decide!
By Richard H. Thaler
Published: 2015
"“People are not just not rational; they are predictably irrational.”"
Winner of the Nobel Prize in Economics Get ready to change the way you think about economics. Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans—predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth—and change the way we think about economics, ourselves, and our world. Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio, selling basketball tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by economists. In other words, we misbehave. More importantly, our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make better decisions in our lives, our businesses, and our governments. Coupling recent discoveries in human psychology with a practical understanding of incentives and market behavior, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioral economic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV game shows, the NFL draft, and businesses like Uber. Laced with antic stories of Thaler’s spirited battles with the bastions of traditional economic thinking, Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policy makers are both profound and entertaining. Shortlisted for the Financial Times & McKinsey Business Book of the Year Award
Showing 8 of 25 similar books
Andrew Lokenauth is a distinguished author and financial expert known for his insightful contributions to personal finance and investment literature. With a career spanning over a decade, he has written extensively on topics such as wealth management, financial planning, and market analysis. Lokenauth's works are celebrated for their clarity and practical advice, making complex financial concepts accessible to a broad audience. He has been featured in numerous financial publications and has established himself as a trusted voice in the industry. Beyond his writing, Lokenauth is also a sought-after speaker, sharing his expertise at various seminars and workshops.
Jordan Hughes is a celebrated author known for their compelling narratives and richly developed characters. Their debut novel, "Echoes of Tomorrow," won the prestigious Man Booker Prize, marking a significant milestone in contemporary fiction. Hughes's work often explores themes of identity, resilience, and the human condition, earning them critical acclaim and a dedicated readership. In addition to their novels, Hughes has contributed thought-provoking essays to major literary journals, further solidifying their influence in the literary world. Their innovative storytelling continues to inspire and captivate audiences worldwide.
Alexis Ohanian is an American entrepreneur, investor, and co-founder of Reddit, one of the world’s most popular social news and discussion platforms. Ohanian is also a prominent advocate for open internet and net neutrality, and he has invested in numerous startups through his venture capital firm, Initialized Capital. In addition to his work in tech, Ohanian is involved in philanthropy, supporting causes related to women’s rights, education, and social justice. He is married to tennis star Serena Williams, and together they advocate for gender equality and inclusive leadership. Ohanian’s influence in the tech world and his commitment to social impact have made him a respected figure in both business and activism.
Andrew Chen is a venture capitalist, entrepreneur, and thought leader in growth marketing, currently serving as a general partner at Andreessen Horowitz. Chen is known for his expertise in network effects, viral growth strategies, and marketplace dynamics, making him a sought-after advisor for startups looking to scale. Prior to joining Andreessen Horowitz, he worked in leadership roles at Uber, helping to grow the ride-sharing platform’s user base and develop key growth strategies. Chen is also a prolific writer, sharing his insights on growth, technology, and startups through his popular blog and newsletter, which has attracted a loyal following in the tech community. His work has helped shape how many startups approach user acquisition, retention, and product-market fit. As a venture capitalist, Chen focuses on early-stage companies in the consumer internet, SaaS, and marketplace sectors, and he has been involved in funding and advising several successful startups. His insights on technology and growth continue to influence both founders and investors alike.
Daniel Kahneman is a renowned psychologist and Nobel laureate, celebrated for his groundbreaking work in the field of behavioral economics. He co-authored the seminal book "Thinking, Fast and Slow," which explores the dual systems of thought and has profoundly influenced both psychology and economics. Kahneman's research, particularly his collaboration with Amos Tversky on prospect theory, challenged the traditional rational model of decision-making and earned him the Nobel Prize in Economic Sciences in 2002. His contributions have reshaped our understanding of human judgment, decision-making, and the nature of happiness. Kahneman continues to be a leading voice in the study of cognitive biases and heuristics.
James Altucher is an American hedge fund manager, entrepreneur, author, and podcaster known for his candid and unconventional approach to success and self-improvement. He has authored over 20 books, including bestsellers like "Choose Yourself" and "Reinvent Yourself," which emphasize the importance of resilience and personal empowerment. Altucher is also a prolific blogger, sharing insights on various topics ranging from finance to mental health. His podcast, "The James Altucher Show," features in-depth interviews with a diverse array of influential figures, further cementing his reputation as a thought leader. Through his writing and media presence, Altucher has inspired millions to embrace failure as a stepping stone to success.
Adam Robinson is a distinguished author, financial advisor, and co-founder of the Princeton Review, which revolutionized the test preparation industry. He is renowned for his best-selling book "Cracking the SAT," which has guided countless students to achieve higher scores. Robinson's expertise extends beyond education into financial markets, where he is a respected global macro advisor. His contributions to literature and finance have earned him a reputation as a thought leader and innovator. Continually sought after for his insights, Robinson remains a pivotal figure in both the educational and financial sectors.
““People are not just not rational; they are predictably irrational.””
Misbehaving
By Richard H. Thaler
Discover a world of knowledge through our extensive collection of book summaries.
Richard H. Thaler is an acclaimed American economist and a pioneer in the field of behavioral economics, known for integrating psychological insights into economic theory. Born on September 12, 1945, he has significantly influenced how people understand decision-making and economic behavior. Thaler's notable works include "Nudge," co-authored with Cass Sunstein, which explores how subtle policy shifts can lead to better choices in various aspects of life. In 2017, he was awarded the Nobel Prize in Economic Sciences for his contributions to the understanding of human behavior in economic contexts. Currently, he serves as a professor at the University of Chicago Booth School of Business, where he continues to inspire new generations of economists.
Key information about the book.
Support local bookstores: BookShop gives a portion of each sale to independent bookshops!
In "Nudge," behavioral economists Richard Thaler and Cass Sunstein unveil the subtle art of influencing choices and shaping outcomes without restricting freedom. They explore how small, seemingly insignificant changes in the way options are presented can lead to drastically improved decisions in health, finance, and overall happiness. With compelling real-world examples and engaging insights, the authors demonstrate how understanding human psychology can empower individuals and policymakers alike. Dive into a world where choice architecture transforms lives and reshapes society's approach to welfare. Discover the hidden nudges that could change everything about the way we choose!
In 'The Wealth of Nations', Adam Smith unveils the intricate dynamics of economics and its impact on society. He argues that free markets, driven by individual self-interest, can lead to unprecedented prosperity. Smith introduces the concept of the 'invisible hand,' suggesting that personal ambitions can benefit the collective good. This groundbreaking work lays the foundation for modern economics, challenging prevailing mercantilist ideas. Dive into Smith's insights to uncover how economic forces shape our world and influence our everyday lives.
In 'Mistakes Were Made (but Not by Me)', Carol Tavris and Elliot Aronson explore the psychological mechanisms of self-justification and the often-unconscious ways we avoid admitting our wrongs. With compelling examples from history, psychology, and personal anecdotes, the authors reveal why people, from individuals to large organizations, refuse to accept accountability. This thought-provoking book challenges readers to confront their own biases and the cognitive dissonance that influences decision-making. Will you choose to embrace the discomfort of acknowledging your mistakes? Dive into this enlightening read and discover the profound impact of accountability on personal growth and relationships.
In 'Freakonomics,' Steven D. Levitt and Stephen J. Dubner explore the hidden side of everything, revealing the surprising truths behind human behavior and decision-making. Through a series of intriguing case studies, they uncover the economic forces that shape our lives in ways we never expected. What do schoolteachers and sumo wrestlers have in common? How do incentives drive the behavior of people in powerful positions? Prepare to challenge your assumptions and see the world through a lens of data and unconventional thinking.
In 'The Model Thinker,' Scott E. Page unveils the transformative power of models in understanding complex systems. He argues that diverse models enhance our thinking and decision-making abilities, allowing us to tackle challenges that defy simple solutions. Through engaging examples and insightful analysis, Page illustrates how model thinking can be applied across various fields, from economics to social sciences. Readers are invited to rethink their approach to problem-solving, embracing a multi-faceted view of reality. This book is an essential guide for anyone seeking to sharpen their analytical skills and navigate the complexities of the modern world.
'Introduction to Econometrics' by James H. Stock and Mark W. Watson serves as a gateway into the fascinating world of econometric analysis, where theory meets practical application. The authors guide readers through key concepts with clarity, making complex ideas accessible to students and aspiring researchers alike. Packed with real-world examples, the book bridges the gap between statistical methodologies and economic phenomena. As you explore topics like regression and forecasting, you'll uncover how data-driven insights can transform decision-making in economics. Are you ready to unlock the secrets of analysis that shape our understanding of the economy?
In 'A History of Economic Theory', Jürg Niehans takes readers on a captivating journey through the evolution of economic thought. From ancient philosophies to contemporary paradigms, the book unravels how ideas have shaped economic practices across cultures and eras. With each chapter, Niehans reveals the intellectual battles and breakthroughs that have defined the discipline. Rich in historical context, this work challenges readers to consider the relevance of past theories in today's economy. Dive into this scholarly adventure and discover how the past continually influences our understanding of wealth and value.
In "For the Win," Kevin Werbach and Dan Hunter explore how online games can influence real-world economics and social change. The authors dive into the vibrant world of virtual economies, revealing how game mechanics can incentivize cooperation and innovation. Through compelling examples, they demonstrate the potential of gamification to solve complex global issues, from labor rights to environmental sustainability. This thought-provoking work challenges readers to reconsider the interplay between gaming and everyday life. Will you see video games as mere entertainment or as powerful tools for transformation?