Behavioral economics helps investors understand irrational market behaviors and customer choices. Examples of behavioral economic theories include loss aversion and sunk-cost fallacy. Recognizing ...

As this debate goes on, both consumers and practitioners are left with a few important questions: What specifically is ergodicity? How does it actually apply to the everyday decision-making of ...

As the column’s name suggests, Thaler set out to challenge standard economic thinking by testing economic anomalies—in other words, what happens when our irrational, some might say human, selves are ...

Like physical health, financial health is a very private matter – and both forms of wellbeing are closely intertwined. Unfortunately talking openly about personal money matters is often considered ...

Ever bought a monthly gym membership thinking it would make you go more often? Or chosen a health insurance policy with a lower deductible, even though the premium was much higher? You’re not alone – ...

The “ultimatum game” is a classic game in behavioral economics. A simple version… One person proposes how to split a pot of money, which another person can accept or reject. If the answer is no, they ...

Behavioral economics combines information about human behavior and outcomes with more standard methods of economic analysis. Behavioral economics has been applied in various contexts such as ...

It’s not just you: Shopping for airfare is harder than ever. Choosing between basic economy and regular economy fares and navigating add-on fees makes booking more complicated, and that’s no accident.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Behavioral economics provides a framework to understand when and how people make mistakes. The new field of behavioral economics blends insights of psychology and economics, and provides some valuable ...

This is an opinion editorial by Rich Feldman, a marketing executive, author and advisory board member at Western Connecticut University. Behavioral economics has long been cited to describe our ...