The digital age intertwines technology and psychology in intriguing ways, particularly when viewed through the lens of behavioral economics. Apps are no longer just tools but carefully designed experiences that can change the way we think, act, and feel. Developers apply ideas from behavioral economics to create apps that subtly influence user behavior, whether it’s …
Are you uncertain about the reasons behind your decision-making? Consider the scenario where you opt for a salad over a hamburger simply because it’s the first item on the menu. That’s how nudge theory works. This psychological theory, made famous by the 2008 book Nudge by Richard Thaler and Cass Sunstein, posits that subtle cues …
Traditional economics assumes that people are rational and logical and make decisions in their own best interest. But in reality, this isn’t always true. Emotions, biases, habits, and social factors all influence our choices. Behavioral economics can help. This science uses psychology and economics to explain how people spend, save, and invest. Behavioral economics helps …
In the complex world of personal finance and investing, we often assume our decisions are rational. However, some cognitive biases can indirectly influence our financial judgments. Although our unconsciously developed mental shortcuts aim to boost efficiency, they frequently lead us astray in today’s data-driven financial landscape. As financial markets and personal budgets become more complex …
Think back to the last time you made a snap decision—like scoring a limited-time deal online or buying a well-known brand without checking the price. Instead of weighing the pros and cons, you might have used a mental shortcut called a “heuristic.” These straightforward guidelines assist us in making decisions swiftly and without excessive deliberation. …
One of the most important things a company can do is hire the right people, but unconscious biases can make it difficult to make the right choices. Behavioral economics combines psychology and economics to reveal how unobvious mental shortcuts influence hiring decisions, leading to discrimination, stereotyping, and missing out on top talent. These biases impact …
Have you ever driven to work or picked up your phone without thinking? Habits are just that. What causes these automatic habits? What makes them so challenging to establish or change? The answers lie in behavioral economics, a fascinating discipline that combines psychology and economics. This field explains why we form habits, how our brains …
How insurance works can be tricky at first, as there are so many terms to remember. “The term ‘deductible’ is one of the most important words you’ll hear when dealing with insurance.” Regardless of the type of insurance you purchase—whether it’s health, auto, home, or something else—your deductible is a key factor in determining how …
Knowing the true value of your business can be a key element in making informed decisions about your business’s future, whether you’re planning your retirement, seeking investments, or simply looking to keep track of your growth as an entrepreneurial businessperson. Most business owners have unclear notions of their company’s worth that are mostly based on emotional …
Choosing the right life insurance policy is an important decision that can impact your finances and the safety of your loved ones. Term life insurance and permanent life insurance are the two most common types of life insurance. Before deciding which policy is best for you, it’s important to understand how both work, as they …