Economic Psychology

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Economic Psychology

How and why markets aren't rational. Navigational tips for charting the Bermuda Triangle of human economic behavior.




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Shocking news: People are not rational! Consolation prize: They are irrational in consistent ways.
 
Ok, where was I? February 1 was a long time ago. I have lost my train of thought. This suggests to me that perhaps I have provided enough background. I am getting bored recounting my little tale.

The bottom line is obvious: economic behavior is a subset of human behavior, not a different 'animal' or a larger category. As such, if we want to understand or predict economic behavior, we should first turn to the field of psychology. There are a series of 'laws' (for lack of a better term) that 'govern' human behavior. Psychologists, especially social psychologists, have spent a long time discovering, codifying and refining their understanding of these laws. They can offer us tremendous value, in the spirit of "knowledge is power." The purpose of this site is to explore, discover, and discuss the ways in which human psychology is manifest in economic behavior. Why? Because it's interesting, and because this perspective can result in innovative approaches to old and new problems. 'Nuf said.