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devinayo's review against another edition
5.0
I like buying clothes that are on sale that I don't actually need. When the clothes arrive, I don't always wear them because it's just not as fun as making the purchase.
I gain the pleasure from getting a good bargain, instead of the goods itself. Apparently in behavioral economic terms it's known as "transaction utility", which according to Richard Thaler in his book "Misbehaving", "can lure all of us into making purchases of objects of little value." This is painfully accurate description of me and my obsession with sales.
Thaler won a Nobel Prize in 2017 for discovering what seemed to be a common truth: that humans are mostly irrational and make bad decisions especially when it comes to the economy. And yet, when he first proposed the idea decades ago, most of the economic theory was built upon the foundation that humans were rational being who seeked to optimize their utility out of the available resources.
Reading "Misbehaving" is a surprisingly fun experience, perhaps thanks to Thaler's understanding that humans are not the so-called Econs who will gladly read dense and dry nonfictions in order to gain insights and understanding about how the economy works and how we, as an irrational being, make decision that might be not always the best in the long run or has the highest value.
Some insights, such as that people are loss averse, might be a common sense now. However, combined with other insights from Thaler's research in behavioral economy, the findings are fleshed out and become more relevant to readers who are not economists. Endowment effect, for instance, explains why it is hard for us to let go of things that we have (or we think that we have) in the face of more attractive choice, be it another goods or money.
Thaler is also the author of "Nudge", which is mentioned briefly in "Misbehaving". He aims to use behavioral economic logic in making public policies or to encourage people into making better decision, which he called as libertarian paternalism.
In short, "Misbehaving" is an interesting read. There are lots of insights and interesting case studies that make the book not at all boring.
I gain the pleasure from getting a good bargain, instead of the goods itself. Apparently in behavioral economic terms it's known as "transaction utility", which according to Richard Thaler in his book "Misbehaving", "can lure all of us into making purchases of objects of little value." This is painfully accurate description of me and my obsession with sales.
Thaler won a Nobel Prize in 2017 for discovering what seemed to be a common truth: that humans are mostly irrational and make bad decisions especially when it comes to the economy. And yet, when he first proposed the idea decades ago, most of the economic theory was built upon the foundation that humans were rational being who seeked to optimize their utility out of the available resources.
Reading "Misbehaving" is a surprisingly fun experience, perhaps thanks to Thaler's understanding that humans are not the so-called Econs who will gladly read dense and dry nonfictions in order to gain insights and understanding about how the economy works and how we, as an irrational being, make decision that might be not always the best in the long run or has the highest value.
Some insights, such as that people are loss averse, might be a common sense now. However, combined with other insights from Thaler's research in behavioral economy, the findings are fleshed out and become more relevant to readers who are not economists. Endowment effect, for instance, explains why it is hard for us to let go of things that we have (or we think that we have) in the face of more attractive choice, be it another goods or money.
Thaler is also the author of "Nudge", which is mentioned briefly in "Misbehaving". He aims to use behavioral economic logic in making public policies or to encourage people into making better decision, which he called as libertarian paternalism.
In short, "Misbehaving" is an interesting read. There are lots of insights and interesting case studies that make the book not at all boring.
tesshuelskamp's review against another edition
4.0
I enjoyed this book. Thaler narrates his career in economics and summarizes the "controversial" work in behavioral economics he did over the course of his career. I enjoyed his story telling (he's quick witted; I laughed out loud during a few parts) and thought he explained the field well without being patronizing. I enjoy the field of economics on it's own and even without Thaler's clever storytelling the content itself would be interesting.
I felt that the chapters were a little bit short and wanted a little bit more out of each chapter (I guess I could go read each paper myself...) but ultimately enjoyed reading the book.
I felt that the chapters were a little bit short and wanted a little bit more out of each chapter (I guess I could go read each paper myself...) but ultimately enjoyed reading the book.
hardscifi's review against another edition
5.0
Fascinating
Being a scientist I never fail to be amazed that people cling to status quo rather than even examine a concept outside of the "box". The examples of hiw human behavior effects tge supposed rational marketplace are clear and entertaining.
Being a scientist I never fail to be amazed that people cling to status quo rather than even examine a concept outside of the "box". The examples of hiw human behavior effects tge supposed rational marketplace are clear and entertaining.
zhzhang's review against another edition
5.0
Great book for the origin/history for behavior economy.
shawshank_47's review against another edition
4.0
Disclaimer-I have been intrigued by behavioral economics for a while and was quite fascinated by [b:Nudge: Improving Decisions About Health, Wealth, and Happiness|3450744|Nudge Improving Decisions About Health, Wealth, and Happiness|Richard H. Thaler|https://i.gr-assets.com/images/S/compressed.photo.goodreads.com/books/1348322381l/3450744._SY75_.jpg|2535409] by the same author. If you have curiosity about these topics, this book will track the evolution of and provide colour to many such ideas which are bound to become the mainstay of optimal decision making. The author comes across as a firebrand who has refused to follow the path of classical economics. The chief shortcoming of classical economics is the assumption that all humans make rational choices. He has made a career of challenging theories founded on assumptions of such unrealistic rationality and their figureheads. The book is divided into parts according to the themes they tackle and give rich context to the established thinking. The way Thaler goes about questioning these notions, building bridges with pioneers in the psychology academia and inspiring others to follow along makes for an interesting page turner. Okay maybe page turner is a stretch, but it still makes for a very engaging read like an entrepreneur describing how they went about realizing their vision. Bits of humor made me laugh out loud at times- the standout bit was when he narrates the Chicago showdown between the traditionalists and the unconventionalists (is that a legit word?)- I was reading it while riding the tube and recall people’s smiles in my general direction. I appreciated the part dealing with Thaler’s work in the UK, because it gave a glimpse of how effective his work can be in improving people’s lives. Understanding how we take decisions is a constant pursuit and this book will help you take a few steps in the right direction.
kacilane's review against another edition
4.0
I really enjoyed learning about the intersection of behavioral economics and behavioral psychology! I find this field so interesting. I also enjoyed Thaler’s writing style.
oleksandr's review against another edition
5.0
This is simultaneously an autobiography of Richard H. Thaler and a history of modern behavioral science. The author was one of the early adopters of the idea, so he can supply a great inside view. At the same time he remains an academic economist, thus he doesn’t bash aimlessly modern mainstream economics but shows where and when its assumptions about rationality may be wrong.
The story starts from early works by Kahneman-Tversky, moves through academia and finishes in practical implementation of behavioral insights in Britain. The list of studies and examples is largely known to readers of Nudge or Predictably Irrational, however it is more tightly interwoven into the single narrative.
Recommended read for anyone, especially non-economists, who are interested in why often people at seemingly irrationally.
The story starts from early works by Kahneman-Tversky, moves through academia and finishes in practical implementation of behavioral insights in Britain. The list of studies and examples is largely known to readers of Nudge or Predictably Irrational, however it is more tightly interwoven into the single narrative.
Recommended read for anyone, especially non-economists, who are interested in why often people at seemingly irrationally.
dws405's review against another edition
4.0
Classical economic theory is predicated upon the premise that choices are being made by rational beings, operating at full capacity of logic and reason. The only problem with applying classical economic theory in the real world is that the real world is comprised of humans. Humans are sometimes irrational, not logical, and short on reason. Are they then 'Misbehaving' when they make choices that go against classical economic theory? If we understand the 'behavior' driving economic choices can better policies be implemented that take into account our 'human' condition?
This book takes you on a journey from the realm of classical economic theory to behavioral economics by one of the founding fathers of behavioral economics. An enjoyable read.
This book takes you on a journey from the realm of classical economic theory to behavioral economics by one of the founding fathers of behavioral economics. An enjoyable read.