Behavioral Economics

This textbook offers a thorough introduction to behavioral economics, covering key theories and real-world applications. Behavioral Economics is ideal for advanced students.

This textbook serves as a comprehensive introduction to the key concepts and findings of behavioral economics for students. It delves into essential ideas such as mental accounting, prospect theory, present bias, inequality aversion, and learning, providing detailed explanations that are accessible to those new to the field. By breaking down these complex theories, the book aims to equip readers with a solid understanding of how human behavior influences economic decision-making.

Over recent decades, behavioral economics has transformed the landscape of economic theory by emphasizing the human element often overlooked in traditional models. It acknowledges that individuals can make irrational choices, exhibit empathy, and are not merely driven by self-interest. This shift in perspective has yielded exciting insights into economic behavior, reshaping our understanding of how people interact within various economic contexts.

In addition to theoretical frameworks, the textbook illustrates the practical applications of behavioral economics in real-world scenarios, including auctions, stock market fluctuations, charitable giving, and healthcare decisions. It also explores the factors that contribute to happiness and how subtle nudges can enhance well-being. The latest edition includes updated discussions on contemporary issues such as fraud, cybercrime, cryptocurrency, and public health messaging, making it a relevant resource for advanced undergraduate and graduate students. The companion website further enriches the learning experience with new questions and worked examples, ensuring that Behavioral Economics remains an essential text in the field.