How We Decide

By Virginia Prescott on Thursday, April 17, 2008.
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Why do we jump at "buy one, get one free" deals, even when we don’t need the items in the first place? Or swear to start dieting and then find ourselves ordering a sticky bun at the coffee shop?

Behavioral economists have some ideas. They look at cognitive-psychology to understand how real people make economic choices. Fifteen years ago behavioral economics was a marginal endeavor. Now, it’s a burgeoning discipline that’s upending our traditional view of humans as rational actors.

Two new books look at the field, and Word of Mouth host Virginia Prescott spoke with science writer Jonah Lehrer about them. He's editor-at-large for Seed Magazine and runs the blog The Frontal Cortex.

Read more on the two books we reviewed:




Nudge: Improving Decisions About Health, Wealth, and Happiness by Richard Thaler and Cass Sunstein









Predictably Irrational: The Hidden Choices that Shape Our Decisions by Dan Ariely







(Photo by Andrei Zmievski)

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