A “nudge” takes advantage of human psychology and a number of other concepts in behavioral economics, including mental accounting—the idea that people treat money differently based on context. For ...

The basic message of behavioral economics is that humans are hard-wired to make judgment errors and they need a nudge to make decisions that are in their own best interest.

Behavioral Economics is the study of psychology as it relates to the economic decision-making processes of individuals and institutions.

The introduction of behavioral economics principles into the economic and policy spheres will change that model, and originate a significant increase of well-being and progress in society.

The concept of behavioral economics is not new. Car salesmen and advertising experts have long understood the power of an individual’s unconscious biases, insecurities, and occasional irrationality to ...

Consumer optimism, as measured by the University of Michigan consumer sentiment index, has rebounded this year to its highest levels since 2007. Overall, this is very positive news about ...

That behavioral economics has been minimized and treated as an aberration by the mainstream has major bearings on how students make sense of markets and the world. Read: The curse of Econ 101.