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In this book, misbehaving refers to the behaviors that contradict the basic assumptions of traditional economics. These are often the research subjects of behavioral economics. Traditional economics assumes that people are rational and that they make decisions that benefit themselves the most. To behavioral economists, however, such assumptions ignore the irrational side of people. This book reviews how behavioral economics has developed throughout the years, and also introduces some important research findings in the field of study.
Richard Thaler is one of the pioneers in the field of behavioral economics. He was awarded the Nobel Memorial Prize in Economic Sciences in 2017 for his contributions to the field. In addition to Misbehaving: The Making of Behavioral Economics, he’s also written The Winner’s Curse: Paradoxes and Anomalies of Economic Life and Nudge: Improving Decisions About Health, Wealth, and Happiness, another best-selling book co-authored by Cass Sunstein. Currently, Thaler teaches at the University of Chicago Booth School of Business as a professor of Behavioral Sciences and Economics. He is also a board member of the school’s Center for Decision Research.