Behavioural Economics: A Very Short Introduction

Traditionally, economists have based their economic predictions on the assumption that humans are super-rational creatures, using the information we are given efficiently and generally making selfish decisions. Economists also assume that we're doing the very best we can possibly do—not only for today, but over our whole lifetimes too.

The study of behavioral economics is revealing that our lives are not that simple. Instead, our decisions are complicated by our own psychology. Each of us m...