Nudging Things Along
I've recently gotten interested in Behavioral Economics, and picked up a new book at the library by Richard Thaler, Misbehaving, in which he recounts the history of the field (which is basically that of the rediscovery of common sense, in the face of enormous resistance from conventional economists). Essentially, Behavioral Economics is about observing people's actual economic behavior, and basing economic models and policy recommendations on evidence. His main conclusions: If you [Read more...]