Misbehaving

Along with Quasi Rational Economics and The Winner's Curse, Richard H. Thaler is the coauthor of the widely read book Nudge alongside Cass R. Sunstein. He is a behavioral science and economics professor at the University of Chicago Booth School of Business and served as the A.E.A. president in 2015.

Nobel Prize winner Richard H. Thaler has dedicated his career to researching the novel hypothesis that predictable, fallible people make up the core of the economy. His riveting and frequently funny tale of the battle to bring an academic subject back to reality—and alter how we view economics, ourselves, and our environment—is found in Misbehaving.

In conventional economics, rational actors are assumed. Thaler discovered early on in his research that these Spock-like automatons were not at all like real people. We all give in to prejudices and make choices that differ from the criteria of rationality proposed by economists, whether we are purchasing a clock radio, selling basketball tickets, or applying for a mortgage. Therefore, we act inappropriately. More importantly, there are negative effects from our bad actions. The study of human errors and their effects on markets was once brushed off by economists as a humorous sideshow, but it is now the focus of efforts to make better judgments for our personal lives, our enterprises, and our governments.

Thaler teaches readers how to make wiser judgments in a world that is becoming more and more mysterious by fusing recent findings in human psychology with a practical comprehension of incentives and market behavior. He describes how behavioral economics offers fresh perspectives on a variety of topics, including household finances, allocating faculty offices under a new structure, TV game shows, the NFL draft, and companies like Uber.

Among the best books on economics, Misbehaving is a unique insight at profound human faults, laced with comic tales of Thaler's valiant struggles against the pillars of conventional economic thinking. The ramifications for people, managers, and decision-makers are both profound and funny when economics and psychology collide.

Author: Richard H. Thaler

Link to buy: https://www.amazon.com/dp/039335279X

Ratings: 4.6 out of 5 stars (from 2345 reviews)

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