Misbehaving: The Making Of Behavioral Economics -

: Real people who are predictable, error-prone, and succumb to biases. They leave tips at restaurants they'll never visit again and overvalue things just because they own them.

: A friend of Thaler’s owned a bottle of wine he bought for $10 that was now worth $100. He wouldn't sell it for $100, but he also wouldn't buy another bottle at that price. This illustrated the Endowment Effect —we value what we own more than what we don't. Misbehaving: The Making of Behavioral Economics

: At a dinner party, guests were devouring a bowl of cashews. Thaler removed the bowl to stop them from ruining their dinner. The guests thanked him, even though traditional economics says more choices (having the cashews available) is always better than fewer. : Real people who are predictable, error-prone, and

The book's central "plot" revolves around a battle between two species: He wouldn't sell it for $100, but he

Thaler uses engaging, often funny anecdotes to prove his points, including:

: A hardware store raising the price of snow shovels during a blizzard might make "economic sense" to an Econ, but it makes real Humans feel cheated, damaging the store's reputation—a concept of fairness traditional models ignored. The Struggle for Acceptance