Behavioral Economics Essential Reads

7 New Books to Read This Fall

By Adam Grant Ph.D. on August 27, 2015 in Give and Take
The best new reads on psychology

Will Americans Eat Fewer Subway Sandwiches Because of Jared?

Jared Fogle embodies the Subway brand so his reprehensible actions spell potential doom. However, I argue that any adverse effects to Subway will be temporary, and offer four explanations for such an outcome.

Do Shoppers Benefit From Buying With Subscriptions?

Most products and services can now be purchased with subscriptions. In this article, I will explain two types of subscriptions and the pros and cons of subscription-based buying. For most shoppers, the potential downsides of subscriptions far outweigh the benefits.

What Shoppers Should Know About Charm Prices

Charm prices (prices that end with the digit 9) are used by retailers because they encourage purchases. In this article, I will explain why charm pricing works and discuss four ways in which shoppers can minimize the effects of charm prices on their buying behavior.

Rainforest and Nordic Countries Vie in Well-Being Index

Social well-being can be measured by various methods that give different results. Now Costa Rica shows that it's not only the Nordic countries that look so good in surveys of well-being and happiness in nations across the globe.

Exposing The One-Trick Phony

By Jeremy E Sherman Ph.D. on August 05, 2015 in Ambigamy
Jon Stewart has been teaching the same psychology lesson night after night, and its the right lesson for our tense, uncertain times.

Three Paradoxical Ways for Coping With Romantic Abundance

Romantic love is often characterized as involving a great deal of sensitivity, excitement, and closeness. However, our cyber society often provides an overabundance of these features. Hence, a few opposite principles are proposed: (a) Indifference is the new romantic sensitivity; (b) Calmness is the new romantic excitement; and (c) Distance is the new romantic closeness.

The Winner's Curse

By Daniel Read Ph.D. on July 29, 2015 in The Choices We Make
Why are our best estimates of value can be wrong when they lead to a successful purchase (or sale).

Why It's Time to Change How You Divide Your Time

We are constantly bombarded with how to achieve greater work-life balance. What if we pursued an optimal time budget instead? Other species do not allocate time evenly across activities. Instead they devote time according to priorities that maximize their success.

Seven Reasons Why Your Financial Life Creates Anxiety

By Michael F. Kay on July 23, 2015 in Financial Life Focus
While there are some who breathe the rarified air of having their financial lives totally together, most people struggle. Your degree of struggle might range from small—not being sufficiently organized—to complete and utter meltdown.

What Your Financial Health Says About Your Mental Health

Studies show the likelihood of having a mental health problem is three times higher among people who have debt.

How to Be More Patient (and Why It's Worth It)

By Art Markman Ph.D. on July 21, 2015 in Ulterior Motives
Delaying gratification is hard. You have probably seen the adorable videos of kids in Walter Mischel’s classic marshmallow experiments. Adults also have a lot of trouble delaying gratification. People pay extra to get fast delivery from websites. They accept small rewards in the present rather than waiting for longer rewards in the future.

Why Nothing Is More Exciting Than a Calm Romance

Romantic love is usually associated with tempestuous excitement. Love can certainly be like this, but I believe that in our current accelerated society, calmness, rather than tempestuousness, is the new romantic excitement.

The Mind Of An Addict

There is a gap between what they prefer to do and what they actually do.

How the Ownership of Something Increases Our Valuations

When we own something we begin to value it more than other people do.

Why Do We Misjudge Others

When we interact with a new person, our judgments are colored by our own past experiences, projections, and expectations.

A Crash Course on Gender Differences - Session 7

By Eyal Winter on June 27, 2015 in Feeling Smart
More Clichés: Men seek Younger and Physically Attractive; Women seek Professionally Successful

My Dad's Silly, Simple, Crazy Way to Make Decisions

My mom's death forced my dad to make one of the biggest decisions he had made in a long time. His approach to the decision turned out to be genius. And all this time, I thought I was the one who knew how to make decisions. Man, was I wrong.

Are You the Real Thing?

Coca Cola's brilliant "Share-a-Coke" advertising campaign has resurrected the flagging giant and refueled the debate over the toxic adverse health effects of soda and the vulnerability of the consuming public.

Are We Doomed to Fail in Love?

Hedonic adaptation and feeling dissatisfied are two major tendencies that prevent us from being too happy. Do they also prevent us from being too much in love? Are we doomed to fail in love, just as we are generally fated not to be very happy?

The Law of Pleasure

All pleasurable activities start out very enjoyable, and within a few minutes we get used to it.

Finding the Missing Link between Economics and Psychology

The missing link between economics and psychology can be found in Behavioral Investment Theory.

A Cynical Attitude Could Cost You

A new study reveals that cynical people earn less money. Three statements can help you determine your level of cynicism.

Our Children's Children's Children*

On top of old worries about whether humankind will survive the next few centuries come new concerns about whether our descendants will even be human in a sense that we would recognize. The centuries ahead could be very interesting, indeed.

Water Games

Negotiations are especially difficult when you are responding to the other party’s assumed instead of actual preferences.

What Happens When the Whole Family Plays with Food?

By Susan Newman Ph.D. on May 19, 2015 in Singletons
What to make for dinner? What will the kids eat? How to get everyone to the table for dinner in spite of packed schedules? Challenges worth meeting. Family therapy can be helpful, but family dinner is transformative.

Democracy and the Pro-social Impulse

Governments answerable to the people can exist only due to the fact that we’re emotional, social creatures, not isolated, rational, strictly selfish individuals. A better appreciation of human nature can help us secure a democratic future.

Tom Brady Broke the Rules, But Don't We All?

By Mark Travers Ph.D. on May 14, 2015 in Social Instincts
Before we tie Tom Brady to the whipping post, perhaps we should think about the times we bent, finessed, or massaged the rules for our own benefit.

The Hidden Price of Progress

By Nick Tasler on May 11, 2015 in Strategic Thinking
Last month's protests in Baltimore reveal surprising paradox in the psychology of change.

Emotional Ideologies

By Eyal Winter on May 08, 2015 in Feeling Smart
We vote out of passion and not out of reasoning