Q6: What are you thinking?
Decades of economic research have assumed people pursue their goals in a rational manner, discounting the effects of emotion, bias, error, and other irrational forces. Robert Shiller argues that economists need to take a closer look at how people make decisions.
A host of studies and academic theories that apply psychological insights to economic behavior have been grouped under the label "behavioral." Is this growing field changing how the economy is studied — and how it functions?
Richard Thaler outlines how principles from behavioral economics can help policymakers — and managers — achieve better outcomes.
Economics has long been used to evaluate the law. But what happens when economics gets things wrong? Law professor Christine Jolls describes the role behavioral economics can play.
Do the choices we make as consumers serve our economic interests? Do they even reflect our real preferences? Three Yale scholars discuss research — their own and others' — that sheds light on these questions.
You encounter it every day. You might count it or spend it or wish you had more of it. But can just thinking about money affect your behavior?
Misunderstanding of risk was a major factor in the subprime crisis and ensuing recession. Andrew Lo argues that one has to look at both logical and emotional parts of the brain to grasp how people respond to financial risk.
A number of economists, psychologists, and neuroscientists are using imaging studies to peek at the brain in action — trying to better understand why we make some of the choices we do.
Polaroid went from ubiquity to obsolescence as digital photography replaced the print. But as early as the 1960s, Polaroid had been doing research into digital imaging. Did mistaken assumptions keep the company from making the transition to the digital world?
Read all articles about behavioral research.