RichardH.Thalerhasspenthiscareerstudyingtheradicalnotionthatthecentralagentsintheeconomyarehumans--predictable,error-proneindividuals.Misbehavingishisarresting,frequentlyhilariousaccountofthestruggletobringanacademicdisciplinebackdowntoearth--andchangethewaywethinkabouteconomics,ourselves,andourworld.Traditionaleconomicsassumesrationalactors.Earlyinhisresearch,ThalerrealizedtheseSpock-likeautomatonswerenothinglikerealpeople.Whetherbuyingaclockradio,sellingbasketballtickets,orapplyingforamortgage,weallsuccumbtobiasesandmakedecisionsthatdeviatefromthestandardsofrationalityassumedbyeconomists.Inotherwords,wemisbehave.Moreimportantly,ourmisbehaviorhasseriousconsequences.Dismissedatfirstbyeconomistsasanamusingsideshow,thestudyofhumanmiscalculationsandtheireffectsonmarketsnowdriveseffortstomakebetterdecisionsinourlives,ourbusinesses,andourgovernments.Couplingrecentdiscoveriesinhumanpsychologywithapracticalunderstandingofincentivesandmarketbehavior,Thalerenlightensreadersabouthowtomakesmarterdecisionsinanincreasinglymystifyingworld.Herevealshowbehavioraleconomicanalysisopensupnewwaystolookateverythingfromhouseholdfinancetoassigningfacultyofficesinanewbuilding,toTVgameshows,theNFLdraft,andbusinesseslikeUber.LacedwithanticstoriesofThaler’sspiritedbattleswiththebastionsoftraditionaleconomicthinking,Misbehavingisasingularlookintoprofoundhumanfoibles.Wheneconomicsmeetspsychology,theimplicationsforindividuals,managers,andpolicymakersarebothprofoundandentertaining.
