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A guide to the study of how and why you really make financial decisionsWhile classical economics is based on the notion that people act with rational selfinterest, many key money decisionslike splurging on an expensive watchcan seem far from rational. The field of behavioral economics sheds light on the many subtle and notsosubtle factors that contribute to our financial and purchasing choices. And in Behavioral Economics For Dummies, readers will learn how social and psychological factors, such as instinctual behavior patterns, social pressure, and mental framing, can dramatically affect our daytoday decisionmaking and financial choices.Based on psychology and rooted in realworld examples, Behavioral Economics For Dummies offers the sort of insights designed to help investors avoid impulsive mistakes, companies understand the mechanisms behind individual choices, and governments and nonprofits make public decisions. A friendly introduction to the study of how and why people really make financial decisions The author is a professor of behavioral and institutional economics at Victoria UniversityAn essential component to improving your financial decisionmaking (and even to understanding current events), Behavioral Economics For Dummies is important for just about anyone who has a bank account and is interested in whyand whenthey spend money.
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