In economics, a theory has long prevailed that markets are based on people making rational choices. But behavioral economist Richard Thaler is seeking to prove that there is far more randomness to our financial decisions. Economics correspondent Paul Solman talks…
The marshmallow test is famous: Give a kid a marshmallow and see if he or she can show enough self-control to hold off eating it and, as a reward, enjoy a second. Its results have often be viewed as fatalistic…
By Simone Pathe
Those gifts you opened this morning -- they're worth less to you than the gift-giver paid for them, no doubt. That's the deadweight loss of Christmas for you. But plenty of economists are saying "bah, humbug" to economic rationality and…
By Michael Chwe
Economist Michael Chwe turns to game theory to explain how a new reporting technology and social norms marketing can help reduce the incidence of sexual assault.
Do you struggle with slouching, overeating or oversleeping? This holiday season, there’s a gift for that. Economics correspondent Paul Solman talks to Sendhil Mullainathan about consumer innovations that promise to improve your life through behavioral economics.
If you're fortunate enough to be able to donate money this holiday season, which organizations will be receiving your checks? Paul Solman speaks with Yale behavioral economist Dean Karlan about the causes that are using funds most efficiently.
By Simone Pathe
Thanks to recent financial scandals and fraud, public trust in the financial industry is low. But a new study published in the journal Nature shows that bankers, themselves, aren't dishonest people; the industry makes them behave dishonestly. What is it…
By David Martin
Days before Halloween, the price of cocoa, and therefore chocolate bars, is up. But Ebola isn't actually threatening the cocoa supply in West Africa, says commodities trader David Martin. Instead, the market is reacting to human fears, and for traders…
New evidence from behavioral economists, researchers who study the psychology behind financial decisions, is at the root of what a number of major companies are using to help consumers get a better fiscal foothold.
More college students lose grandparents right before taking college exams. Duke professor and irrationality expert Dan Ariely has a solution: Enroll in Massive Open Online Courses to spare grandparents some fatal stress.
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