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A review by baghaii
Misbehaving: The Making of Behavioral Economics by Richard H. Thaler
5.0
This was one of the best books on economics that I have read in a long time. It discusses the creation of evidence-based economics that work in a world of Humans as opposed to a world of Econs, humans that behave optimally ignoring numerous supposedly irrelevant factors.
In this book, Thaler talks about how he started applying knowledge from psychology to economics to have a better understanding of how actual humans behave as opposed to how Econs behave. He said nice things about Cialdini, the author of Influence. Influence is a book on sales and marketing written by Cialdini who is a psychologist. That book has been around a long time and is very popular among people who are in business and need to sell things.
Thaler writes about how people treat money as their own money or as someone else's money. He writes about how business owners may want to take risks. However, the incentives exist for the managers under those owners not to take risks because the managers do not want to be fired for taking risks and losing money.
This book talks about the Chicago School of economics a lot. Some of the key players in this book were people who helped President Obama set his economic agenda. The book was interesting because it mentioned some of the personal characteristics of those people. Maya Shankar was one of the interesting economists mentioned in this book that I, a person who does not follow economics that closely, had never heard of before.
In this book, Thaler talks about how he started applying knowledge from psychology to economics to have a better understanding of how actual humans behave as opposed to how Econs behave. He said nice things about Cialdini, the author of Influence. Influence is a book on sales and marketing written by Cialdini who is a psychologist. That book has been around a long time and is very popular among people who are in business and need to sell things.
Thaler writes about how people treat money as their own money or as someone else's money. He writes about how business owners may want to take risks. However, the incentives exist for the managers under those owners not to take risks because the managers do not want to be fired for taking risks and losing money.
This book talks about the Chicago School of economics a lot. Some of the key players in this book were people who helped President Obama set his economic agenda. The book was interesting because it mentioned some of the personal characteristics of those people. Maya Shankar was one of the interesting economists mentioned in this book that I, a person who does not follow economics that closely, had never heard of before.