It is common knowledge that psychological factors affect markets, but traditional economic theory does not account for them. Instead, classical economics assumes that markets are logical and rational. Behavioral economics has given birth to several theories that help us understand the psychological factors involved in choosing which of several investments, consumer items, or other market items to select. Choice theory posits that decision making is sensitive to formulation, context, and procedure preferences between gambles. Prospect theory examines choice under risk and has described such effects as loss aversion: framing effects, the formulation decision makers are exposed to and the interpretation they construct, and mental accounting, which oversimplifies.
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Behavioral Economics
Click on a title for ordering information, educational objectives, author biographies, and more.
 | How Human Psychology Drives the Economy and Why It Matters for Global CapitalismGeorge A. Akerlof and Robert J. Shiller230 page (180 text)7 CE credits |
|  | Understanding Behavioral Finance and the Psychology of InvestingHersh Shefrin310 pages10 CE credits |
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 | Daniel Kahneman and Amos Tversky, Eds.390 pages14 CE credits (Chaps. 1-21) |
| | Daniel Kahneman and Amos Tversky, Eds.382 pages14 CE credits (Chaps. 22-42) |
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| Daniel Kahneman and Amos Tversky, Eds.860 pages28 CE credits (All chapters) |
|  | Uncertainty, Chaos, and Luck - Why Some Thrive Despite Them AllJim Collins, Ph.D. & Morten T. Hansen, Ph.D.320 pages (184 text)6 CE credits |
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 | Jonah Lehrer256 pages8 CE credits |
|  | Improving Decisions About Health, Wealth, and HappinessRichard H. Thaler & Cass R. Sunstein304 pages10 CE credits |
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 | The Story of SuccessMalcolm Gladwell320 pages9 CE credits |
|  | Dan Ariely304 pages10 CE credits |
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 | Sex, Evolution, and Consumer BehaviorGeoffrey Miller384 pages12 CE credits |
|  | How We Lie to Everyone -- Especially OurselvesDan Ariely, Ph.D265 pages9 CE credits |
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 | Daniel Kahneman, Ph.D.512 pages (416 text)15 CE credits |
| | Daniel Kahneman, Ph.D.512 pages (416 text)8 CE credits |
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 | The Science and Psychology of Better JudgmentJ.D. Trout285 pages (235 text)8 CE credits |
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