Quotes About Behavioral economics

The good thing I will say about the Chicago School is that it was always about the world, not about the abstract.

There's a personality trait known as agreeableness. Agreeable people are compassionate and polite. And agreeable people get paid less than disagreeable people for the same job. Women are more agreeable than men.

The left-brainer and the economist in me says watch what people do, not what they say.

Even the most analytical thinkers are predictably irrational; the really smart ones acknowledge and address their irrationalities.

Markets can remain irrational a lot longer than you and I can remain solvent.

I love Richard Thaler's 'Quasi Rational Economics.' A collection of some of his most interesting and inventive essays, the real foundation of behavioral economics.

A nudge is some feature of the environment that changes the behaviour of humans but would not change the behaviour of rational economic agents, what we call Econs.

Economists discount any factors that would not influence the thinking of a rational person.

Legal behavior is not incompatible with rational, self-interested behavior.

In essence, the endowment effect is really just another manifestation of loss aversion: People

Arbitrage human nature. It's not going to change any time soon.

Let's start by admitting that human beings don't always act rationally.

It is a fact that we have always behaved as if we knew all this; but, for the most part, our theoretical concepts have neglected to attach the same importance to the economic line of approach as they have to the dynamic and topographical ones.

In a world where millions of people make complex economic decisions, often what "feels right" makes for bad policy.

The thing I have discovered about working with personal finance is that the good news is that it is not rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.

I knew that psychological as well as economic factors motivate human behavior.

I would reject the distinction between a Keynesian moment and a behavioral moment.

Interestingly, human irrationality is a hot topic in economics at the moment. Behavioural economics it's called, on the cusp of economics and psychology.

Economics is the science that studies how people and societies make decisions that allow them to get the most out of their limited resources.

Investing is the intersection of economics and psychology.

Some studies have estimated that losses have more than twice the psychological impact as equivalent gains. The fact is, we all hate to lose, which Kahneman and Tversky refer to as loss aversion.

KAHNEMAN AND TVERSKY HAVE USED THEIR RESEARCH ON FRAMING and its effects to construct a general explanation of how we go about evaluating options and making decisions. They call it prospect theory.

Notice that the curve falls steeply at the beginning and then gradually levels off. This reflects what might be called the "decreasing marginal disutility of losses.

There are three basic flavours of incentive: economic, social and moral.