Behavioral economics helps investors understand irrational market behaviors and customer choices. Examples of behavioral economic theories include loss aversion and sunk-cost fallacy. Recognizing ...

Organizations around the globe are increasingly using insights from the field of behavioral economics to help people make more efficient decisions. Discover how to apply cutting-edge behavioral ...

Economists and psychologists work together to understand how human behavior impacts people's decision-making in the marketplace.

People donate to charity for many reasons. Hardly an objectionable claim. Generosity. Self-satisfaction. Guilt. Reciprocity. Duty. Prestige. People also do not donate to charity for many reasons. Also ...

Some researchers say it has also been rich with examples of the ways in which shaken confidence — and other psychological and behavioral factors — affects individuals’ financial decisions and the ...

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Note from Paul Solman: Dean Karlan is a Yale behavioral economist with a mission, a mission almost all economists used to share and many would insist they still do: to improve human welfare. Not ...

Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by ...

You've done everything—endured diets, purged your freezer of Ben & Jerry's, and educated yourself on fat, sugar, and calories. Yet, you can't manage to lose weight. What's wrong with you? According to ...

Behavioral economics provides a framework to understand when and how people make mistakes. The new field of behavioral economics blends insights of psychology and economics, and provides some valuable ...