Behavioural economics and finance (Second edition.)

Behavioural economics and behavioural finance are rapidly expanding fields that are continually growing in prominence.

While orthodox economic models are built upon restrictive and simplifying assumptions about rational choice and efficient markets, behavioural economics offers a robust alternative using insights and evidence that rest more easily with our understanding of how real people think, choose and decide.

This insightful textbook introduces the key concepts from this rich, interdisciplinary approach to real-world decision-making.

The new edition is a thorough extension of the first edition, including updates to the key chapters on prospect theory; heuristics and bias; time and planning; sociality and identity; bad habits; personality, moods and emotions; behavioural macroeconomics; and well-being and happiness.