As the column’s name suggests, Thaler set out to challenge standard economic thinking by testing economic anomalies—in other words, what happens when our irrational, some might say human, selves are ...

Professor Richard Thaler of the Booth School of Business gave an open lecture on November 3 about his and his cowriter Cass Sunstein’s 2008 book Nudge and its new edition, Nudge: The Final Edition, ...

Behavioral Economics is the application of psychology to the field of economics. It describes the role that psychology plays among consumers, employers, and governments, which then impacts markets and ...

Climate change is among the largest threats to humanity. The current gradual government action is insufficient in effectively reducing greenhouse gases (GHG) pollution. In fact, at the current ...

The latest readings on consumer sentiment are sounding alarms across the financial world. While hard data on the economy can be negative, only when consumer optimism drops do we see a decrease in ...

Learn how Nobel Laureate Daniel Kahneman's work in behavioral economics revolutionized the understanding of human ...

Behavioral economics combines psychology and economics to understand human behavior. People often make decisions based on their emotions and act on impulse. However, the right nudges—monetary and ...

Over the last 10 years, Behavioral Economics (BE) has become increasingly popular (see Google Trends chart below). According to BE, people’s economic decisions are often less guided by stable ...

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