TITLE

Why Is Behavioral Economics So Popular?

DESCRIPTION

Behavioral Economics is a growing popular field combining at its base both principles of Psychology and Economics.  “What is behavioral economics, and why has it become so popular? The field has been described by Richard Thaler, one of its founders, as “economics done with strong injections of good psychology.” Proponents view it as a way to make economics more accurate by incorporating more realistic assumptions about how humans behave.”  As increasing attention is being made to the field, there is a focus on the types of explanations and studies being put forth to support the notions of behavioral economics such as the concept of “loss aversion” and “nudging.”   The article focuses on some of the criticism of the studies and alternative explanations in the field but concludes that a positive understanding of the usefulness of Behavioral Economics is useful overall.  Students would do well with trying to understand the field as both an application of Psychology as well as a career field.

SOURCE

New York Times, October 6, 2018, by David Gal

LINK TO RESOURCE

https://www.nytimes.com/2018/10/06/opinion/sunday/behavioral-economics.html

(Tiny URL)  http://tinyurl.com/ycq5cbfa

CLASS DISCUSSION QUESTIONS

•What is Behavioral Economics?

•How does the field make us of Psychological principles in its application to human behavior?

•What is “nudging”?

•What is the concept of “loss aversion,” and according to the article, what are some of the criticisms and alternative explanations?

•How does the field of Behavioral Economics open up career opportunities to students of Psychology?