Basic Instincts: Human Behaviour and the New Economics

by Pete Lunn

Human instincts are surprisingly sophisticated and subtle, having adapted over generations of trading with each other. Understanding how these instincts work can not only change the way you think about your own affairs, it can alter how you think about a whole range of economic and business issues (from what constitutes a fair salary to the impact of globalisation).A new breed of economists - known as behavioural economists - has started to observe economic life more closely. This book reveals the fascinating results of their studies . Human instincts have long been ignored by traditional economics, but they are crucial factors in major economic decisions, and hence important for our futures. This engaging book is about those human instincts and how the study of them has begun to change fundamentally the science of economics and our own behaviour in today's world

304 pages, Paperback

First published June 1, 2008

Reviews

[Rik · Rating 3 out of 5]

I borrowed this from a friend, expecting something as accessible as 'afluenza', and have been a little disappointed. This is really aimed at economists and people in the financial world, not someone looking for insight in this area, such as myself. The author seems to be trying to convince other economists that the way they view the world is not matched by experience, and as generally clever people they should stop making excuses for why their model does not work, and make efforts to study how things really do work. There were plenty of interesting observations and examples of how people do interact in both contrived and real settings, and I have learned quite a lot from the book, it's just the overall format that made it not so enjoyable to read. I think most people with an interest in finance would gain if they are open minded enough (which the author implies most are not!).

[sarah · Rating 5 out of 5]

Interesting reading for those interesting in Behavioral economics .

[Jafar · Rating 3 out of 5]

See my review below for Nudge. The book starts with a that’s-why-it-happened preface about the financial crisis. After that, expect the same usual doses on human psychology that you can find in other such books. In Nudge, they talk about Econs vs. Humans. Here Lunn renames them to Marketopians and Muddletonias and recycles the same ideas. The idea, central to behavioral economy, being that humans don’t behave in the perfectly rational and selfish ways that the classical economists claim. Yes, we never believed them anyway. This book is not as boring as Nudge because Lunn was a neuroscientist before turning to economy.

[Enock · Rating 5 out of 5]

This book is awesome! A disrupt to the traditional old theories of economics! The New economics is the way forward! With this book, how to know you customer during customer development of your business model becomes very becomes simple!