For centuries, economics was dominated by the idea that we are rational
individuals who optimise our own 'utility'. Then, in the 1970s,
psychologists demonstrated that the reality is a lot messier. We don't
really know what our utility is, and we care about people other than
ourselves. We are susceptible to external nudges. And far from being
perfectly rational we are prone to 'cognitive biases' with complex
effects on decision-making, such as forgetting to prepare for
retirement. David Orrell explores the findings from psychology and
neuroscience that are shaking up economics - and that are being
exploited by policy-makers and marketers alike, to shape everything from
how we shop for food, to how we tackle societal happiness or climate
change. Finally, he asks: is behavioural economics a scientific
revolution, or just a scientific form of marketing?