Behavioral Economics

The intersection of psychology and economics, behavioral economics looks at human tendencies that involve biology and culture when predicting and explaining economic decision-making.

Black Swans and Gray Rhinos

We can use a zoo that includes black swans, gray rhinos, elephants, and camels to describe financial events and human behavior.

Why Our Tipping Behavior Changed

Explained by behavioral economics, a new technological default changed our tipping behavior in restaurants and taxi cabs.

Why We Won’t Get the Gifts We Want

For this holiday season, economists tell us that gift giving could say more about the giver than what the recipient wants.

The Downside of Giving Gifts

As we start to plan our gift giving for this holiday season, we should remember preference falsification and deadweight loss.

When Inflation Creates a Cheap Date

In addition to our behavior at the supermarket and the gas station, inflation has created the incentive to go on cheap dates.

What Lottery Winners and Losers Need to Know

Futher confirming that economics is everyday life, behavioral economists have explained why we buy tickets when we won’t be lottery winners.

Why Mint Chocolate (Chicken) Could Be Our Next Trendy Food

Looking at trendy food takes us to South Korean tastes and the U.S. history of new foods coming and going.

The Best Countries

Seeing the U.S. News 2022 ranking of the world’s best countries, we can combine skepticism with the insight conveyed by people’s perceptions.

How We Should (Not) Respond to Stock Market Losses

As we experience the pain of stock market losses, making it even worse, behavioral economists tell us we will sell at the wrong time.

How Price “Gouging” Can Help Us

Although price gouging harms countless people after a disaster, its upside is the incentive to increase supply.