Behavioural Economics - Grand Format

The rise of behavioural approaches in economics has been one of the most significant developments in the study of economic decision-making in recent years. The increasingly acknowledged failings of standard models of choice to explain economic decisions has prompted economists to incorporate into their analysis psychological insights into individual behaviour, such as social, cognitive and emotional biases.
This book introduces the topic of behavioural economics to a beginning readership, explaining its approach and methodology and assessing its successes and weaknesses. It begins by tracing the evolution of the field - from Adam Smith's moral sentiments to the work of Daniel Kahneman and Richard Thaler today - before showing how behavioural economics has advanced our understanding of human preferences, the mental processes involved in decision-making, and the influence of peer groups.
The book concludes by considering the ways in which findings from behavioural economics have been used to alter the decisions people make and the ethics of such persuasion.