Overview

Traditionally, economists have based their economic predictions on the assumption that humans are super-rational creatures, using the information we are given efficiently and generally making selfish decisions. Economists also assume that we're doing the very best we can possibly do--not only for today, but over our whole lifetimes too. The study of behavioral economics is revealing that our lives are not that simple. Instead, our decisions are complicated by our own psychology. Each of us makes mistakes every day. We don't always know what's best for us and, even if we do, we might not have the self-control to deliver on our best intentions. We struggle to stay on diets, to get enough exercise, and to manage our money. We misjudge risky situations. We are prone to herding: sometimes peer pressure leads us blindly to copy others around us; other times copying others helps us to learn quickly about new, unfamiliar situations. This Very Short Introduction explores the reasons why we make irrational decisions; how we decide quickly; why we make mistakes in risky situations; our tendency to procrastination; and how we are affected by social influences, personality, mood, and emotions. The implications of understanding the rationale for our own financial behavior are huge. Behavioral economics could help policy-makers to understand the people behind their policies, enabling them to design more effective policies, while at the same time we could find ourselves assaulted by increasingly savvy marketing. Michelle Baddeley concludes by looking forward, to see what the future of behavioral economics holds for us.

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Michelle Baddeley is a research professor at the Institute for Choice, University of South Australia. Corinne Davies is a classically trained actress based in Los Angeles. Originally from Australia, Corinne has worked extensively in all areas of voice-over and on stage and screen. A highly skilled narrator, Corinne is building an impressive portfolio across many genres. Specializing in an array of accents and dialects, Corinne often narrates entire books in accents other than her own. She loves delving into a story and bringing the world and the characters to life. Her range spans the poetic, wordy, and lyrically complex to the dramatic and suspenseful to the romantic and warm to the lighthearted and comedic. Her recent credits include The War Widow by Tara Moss. She holds a BA in acting from the prestigious National Institute of Dramatic Art (NIDA) located in Sydney, Australia.

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