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

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, it seems, might just have a bias problem of its own. Once dismissed as little more than psychobabble, the discipline, which marries classical economics with psychology, has won ...

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 – ...

Behavioral Economics—an eight-week virtual program that blends self-paced online modules with live-online sessions led by Chicago Booth faculty—helps executives make more effective decisions. Discover ...

Climate change is among the largest threats to humanity. The current gradual government action is insufficient in effectively reducing greenhouse gases (GHG) pollution. In fact, at the current ...

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 ...

Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by ...

People donate to charity for many reasons. Hardly an objectionable claim. Generosity. Self-satisfaction. Guilt. Reciprocity. Duty. Prestige. People also do not donate to charity for many reasons. Also ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Michael Boyle is an experienced financial professional with more than 10 years ...