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Why the Most Important Idea in Behavioral Decision-Making Is a Fallacy
Loss aversion, the idea that losses are more psychologically impactful than gains, is widely considered the most important idea of behavioral decision-making and its sister field of behavioral economics. To illustrate the importance loss aversion
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The “Warm Glow” of Giving May Overshadow Doing the Greatest Good
Whether you’re buying a home or squirreling away a nest egg for retirement, financial decisions are all about the numbers – except for when it comes to charitable giving.
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How Low Income Affects Routine Decisions
The US government shutdown has left scores of people without paychecks. Their worries about money will be difficult to suppress and may interfere with other experiences, research suggests.
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Why policy makers should nudge more
Chicago Booth Review: When policy makers around the world want to influence their constituents’ behavior, they have a few options. They can offer a carrot, such as a tax incentive, stipend, or other reward. They
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If You Want to Feel Better, Spend Money on Saving Time
The Wall Street Journal: People feel happier when they pay to save time than when they buy something nice for themselves. Those are the results we found in a series of recent studies. Spending on
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Poor extroverts spend proportionately more on buying status
The Economist: EVEN when money is short, an occasional high-end experience is tempting. From luxury clothes to a round of golf, splurging not only makes people feel better, but may also enhance their status with
