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
