5 Best Books on Behavioral Economics

Behavioral economics studies the effects of psychology, emotions, and cultures on the decisions of individuals and institutions. And by studying so, institutions can design their products to become more appealing to customers and thereby leading t more sales. Here, are some books from which you can learn behavioral economics.

Number 1

Misbehaving: The Making of Behavioral Economics by Richard H. Thaler

Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policymakers are both profound and entertaining. This book 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.

Number 2

Predictably Irrational by Dan Ariely

From drinking coffee to losing weight, from buying a car to choosing a romantic partner, Ariely explains how to break through these systematic patterns of thought to make better decisions. "Predictably Irrational" will change the way we interact with the world--one small decision at a time.

Number 3

Freakonomics by Steven J. Levitt and Stephen J. Dubner

Freakonomics establishes this unconventional premise: If morality represents how we would like the world to work, then economics represents how it actually does work. It is true that readers of this book will be armed with enough riddles and stories to last a thousand cocktail parties. But Freakonomics can provide more than that. It will literally redefine the way we view the modern world.

Number 4

Nudge: Improving decisions about Health, Wealth and Happiness by Richard H. Thaler and Cass R. Sunstein

Nobel Prize winner Richard H. Thaler and Harvard Law School professor Cass R. Sunstein show that no choice is ever presented to us in a neutral way and that we are all susceptible to biases that can lead us to make bad decisions. But by knowing how people think, we can use sensible “choice architecture” to nudge people toward the best decisions for ourselves, our families, and our society, without restricting our freedom of choice.

Number 5

Blink: The Power of Thinking Without Thinking by Malcolm Gladwell

In Blink, we meet the psychologist who has learned to predict whether a marriage will last, based on a few minutes of observing a couple; the tennis coach who knows when a player will double-fault before the racket even makes contact with the ball. It reveals that great decision-makers aren't those who process the most information or spend the most time deliberating, but those who have perfected the art of "thin-slicing" - filtering the very few factors that matter from an overwhelming number of variables.

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