Thaler's "Misbehaving"

Thaler's "Misbehaving" highlights how people's decisions often contradict traditional economic theories that assume individuals act rationally to maximize their benefits. Instead, Thaler demonstrates how psychological factors—like biases, emotions, and social influences—shape our choices in unexpected ways. He introduces concepts like "nudge theory," which suggests small changes in how choices are presented can lead to better decision-making. Ultimately, Thaler's work bridges economics and psychology, showing that understanding human behavior is crucial for improving personal finance, policy-making, and overall well-being.