What exactly is ‘behavioral’ economics? In understanding the distinction between behavioral and theoretical economics, it’s important to understand that within the ‘traditional’ view of economic theory, it is assumed individuals behave in a vacuum. In practice, however, the attitudes and wants of individual actors is well, human. In an interview with Yale professor Robert Shiller, Nigel Warburton clarifies this: So what you’re saying [...]
For many people, saving money isn’t just difficult; it’s a foreign concept. A recent study found that 58% of Americans do not have a formal retirement plan in place.¹ Why is even thinking about saving money so daunting to so many of us? We spoke with Dan Ariely, professor of psychology and behavioral economics at [...]
In this program, we visit employers implementing the program, who agree it has dramatically reduced employee turnover and increased productivity.
Sometimes making a choice involves a complicated mental gymnastics designed to convince ourselves that the snazzier option is also the rational choice, writes Dan Ariely.
We often find it difficult to say no, writes our favorite irrationality specialist Dan Ariely. The reason may be related to how we approach the future.
When going on a first date, we try to achieve a delicate balance between expressing ourselves, learning about the other person and not offending anyone, favoring friendly over controversial even at the risk of sounding dull. This approach might be best exemplified by an amusing quote from the film “Best in Show”: “We have so [...]
Obsessively checking e-mail or Facebook has become a productivity killer for many of us. Behavioral economist Dan Ariely explains what rats can teach us about these annoying habits.