When Christina Fang was a graduate student at the University of Pennsylvania, in the Wharton School of Business, she took a course on behavioral decision making and it blew her away. It fascinated her that people and firms can deviate systematically…

What do economics, psychology, and experimental science have in common? As Richard Thaler implies in Misbehaving: The making of behavioral economics, most economists would say little to none — but this couldn’t be further from the truth. Misbehaving is, first and foremost, a story of how modern economics, finance, and theoretical analysis have become increasingly specialized and narrow without substantial practical value. Utilizing empirical studies and anecdotes, funny stories, and even some jokes, Thaler persuades the reader that behavioral studies — or psychology-motivated disciplines which focus on humans, not mythical rational agents — are here to stay. 

Thaler’s findings have numerous and far-reaching implications for designing and implementing ethical systems within organizations. Read our book review and learn more.