ZBC#86 [Push to knowge] ~ Misbehaving: The Making of Behavioural Economics/行動経済学の逆襲
Today, let me introduce Misbehaving: The Making of Behavioural Economics from Zenport Book Club#86 on Jan20th.
Prof. Richard H.Thaler, the author of this book, claims that human cannot behave rationally, and we need to discuss how economics works based on that assumptions.
He called the people who behaves rationally econ, and the people who behave based on their feeling are human.
Then, how we human tends to behave? and how we should make the economic model based on that assumption?
Let’s get started.
Summary
- Conventional economics are built on the basis that people behaves rationally. On the other hand, behavioral economics are established on the assumption that people behaves irrationally. In this book, those who behave rationally are called econ, and those who act irrationally are called human.
- The author thinks that, we need to accept that people cannot behave reasonably, and make economic model based on that assumption.
- He proposed the other concept, called mental accounting. That include sunk cost and house money effect. To overcome mental accounting is not easy even though we know that.
- Now, the promising field that behavioral economics is most used is finance. On the other hand, macroeconomics is the field where behavioral economics is not used due to lacking of data. However, it has the potential that makes use of behavioral economics.
Discussion
- As a manager, the concept gives me a lot of study. We need to know that how human tend to behave. It should have some patterns and it will help us to build the better team. For example, Pixar and Bell laboratory made the office based on the ideas. Based on those example, I’ll try new things to let members works comfortably and collaborate easily.
Conclusion
Today, I’ve introduced Misbehaving: The Making of Behavioral Economics, which describes the behavioral economics.
Next, let me introduce The Silo Effect[サイロ・エフェクト] from Zenport Book Club #87.
Related books
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