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A review by bleary
Misbehaving: The Making of Behavioural Economics by Richard H. Thaler
5.0
Classical economics assumes that the economy is inherently rational - people make sensible decisions based on available data, and markets self-correct any errors.
Behavioural economics rejects this and instead points out that, to use a phrase that appears in this book, "THERE ARE IDIOTS. Look around."
Misbehaving is a great introductory to the behavioural model, laying out the case for an economic model that's driven by emotion and bias as much as it is by data and reason. It's also a semi-biography of Thaler's journey from cocky post-grad to respected economist and adviser to the Cameron-Clegg government, detailing all the arguments, dead ends and lucky breaks along the way.
It's hugely illuminating for non-economists, and a surprisingly funny book that made me laugh throughout. I've rarely laughed as deeply as I did at the chapter about the Univeristy of Chicago's economics department deciding how to allocate new offices.
Behavioural economics rejects this and instead points out that, to use a phrase that appears in this book, "THERE ARE IDIOTS. Look around."
Misbehaving is a great introductory to the behavioural model, laying out the case for an economic model that's driven by emotion and bias as much as it is by data and reason. It's also a semi-biography of Thaler's journey from cocky post-grad to respected economist and adviser to the Cameron-Clegg government, detailing all the arguments, dead ends and lucky breaks along the way.
It's hugely illuminating for non-economists, and a surprisingly funny book that made me laugh throughout. I've rarely laughed as deeply as I did at the chapter about the Univeristy of Chicago's economics department deciding how to allocate new offices.