As a behavioral economist, Dan Ariely studies the way people make economic decisions. His conclusion? We don't do it the way economists typically say we do. Instead, he finds, humans are "predictably ...

Human beings are predisposed to make bad investment decisions. Our natural reactions will lead us to buy near the peaks and sell near the lows, which is not a good recipe for building wealth.

There’s an old saying among investors that “the market can stay irrational longer than you can stay liquid.” It’s a tongue-in-cheek nod to behavioral finance: the concept of applying rational thinking ...

I recently read Malcolm Gladwell’s new book, Outliers, with great interest and delight. Gladwell is a fantastic author: always thought-provoking on human behavior and a quick, entertaining read. But I ...

Investors are human. And as humans, they're prone to biases and psychological influences that lead to irrational decision-making. You need only look at the stock market – which has soared to all-time ...

Behavioral economics helps investors understand irrational market behaviors and customer choices. Examples of behavioral economic theories include loss aversion and sunk-cost fallacy. Recognizing ...

Many reactions to COVID-19 can be explained by one simple concept: intertemporal substitution. Its awkward name notwithstanding, the idea helps to make sense of many behaviors that otherwise might ...

New Haven, Conn.--The basic economic theory that people work harder to avoid losing money than they do to make money is shared by monkeys, suggesting this trait has a long evolutionary history, ...