Behavioural Economics: Psychology, Neuroscience, and the Human Side of Economics

by David Orrell

The controversial science that claims to have revolutionised economics.
For centuries, economics was dominated by the idea that we are rational individuals who optimise our own 'utility'. Then, in the 1970s, psychologists demonstrated that the reality is a lot messier. We don't really know what our utility is, and we care about people other than ourselves. We are susceptible to external nudges. And far from being perfectly rational we are prone to 'cognitive biases' with complex effects on decision-making, such as forgetting to prepare for retirement.
David Orrell explores the findings from psychology and neuroscience that are shaking up economics - and that are being exploited by policy-makers and marketers alike, to shape everything from how we shop for food, to how we tackle societal happiness or climate change. Finally, he is behavioural economics a scientific revolution, or just a scientific form of marketing?

Genres: Nonfiction, Psychology, Economics, Science, Audiobook

195 pages, Kindle Edition

Published January 7, 2021

About the author

David Orrell, Ph.D. is a scientist and author of popular science books. He studied mathematics at the University of Alberta, and obtained his Ph.D. from Oxford University on the prediction of nonlinear systems.

His work in mathematical modeling and complex systems research has led him to diverse areas such as weather forecasting, particle accelerator design, economics, and cancer biology. He has authored or coauthored research papers for journals including Journal of the Atmospheric Sciences, Nature Genetics, the International Journal of Bifurcations and Chaos, and Physica D.

He is the author of Economyths and The Other Side of the Coin: The Emerging Vision of Economics and Our Place in The World about new economic theories; and The Future of Everything: The Science of Prediction about prediction in weather, genetics, and economics, which was a national bestseller and finalist for the 2007 Canadian Science Writers' Association book award. Foresight called it "An engaging, as well as deeply insightful, discussion on the difficult task of prediction ... it can change the way you view forecasting."

David has been a guest on radio shows including Coast to Coast AM, NPR, and BBC, and his work has been featured in print media such as New Scientist and the Financial Times. He has spoken at many conferences and events including the Art Center Global Dialogues on Disruptive Thinking. He currently lives in Oxford, UK, where he runs a mathematical consultancy Systems Forecasting.

Awards
Finalist: Canadian Science Writers' Association book award (2007)
Finalist: National Business Book Award (2011)

Reviews

[Ramis · Rating 2 out of 5]

Just an average not appeasing at all , this based on old behavioural science theory nothing new at all.

[Filip Eklund · Rating 3 out of 5]

David Orrell gives an objective overview of behavior economics as seen from its 50 year time span. Though not groundbreaking, it covers most essential theories and aspects in a fairly understandable way. The issue with books like these is that in order to keep things entertaining, one also needs to simplify much of the contents. With a background in economics and an interest in psychology I got tempted to buying this book. Knowing what I know now, I’d perhaps rather have read the articles of which it was based.

But, all in all though a good read, sparking an interest to go beyond and to learn more on many of the subjects.

[Vanya Prodanova · Rating 2 out of 5]

Приключих я преди няколко часа и ми е трудно да си спомня каквото и да е от нея.

Макар да е малка книжка като страници, книгата беше много скучно написана, което си е постижение, визирайки, че става дума за поведенческа икономика, което е интересна тема като цяло и е почти невъзможно да представиш материята по-скучен и сух начин, ама ето, че е възможно.

От това, което мозъкът ми запомни, не бих и казала, че е нещо различно от други книги, които съм чела, които представяха информацията много по-достъпно и забавно. Та, не си струва времето и парите книгата.

[jpolstep · Rating 3 out of 5]

🌟 3.5 🌟

[Ayaan Tigdikar · Rating 4 out of 5]

Really illuminating, explores behavioural economics in an easy-going yet scientific manner.

[Sam Still Reading · Rating 2 out of 5]

It was probably a mistake to start this book just after finishing Richard Thaler’s Misbehaving as it covers many of the same studies (albeit in abridged forms). It also just wasn’t as enjoyable as Thaler’s book, who is quite funny and (obviously) passionate about his subject.

The Hot Science series by Icon Books covers new/developing/popular areas of science and is a good way to get your head around different areas of science in a compact format, particularly if you’re not familiar with the subject. I’m probably not the target audience of this book because I know a bit about economics and some of its branches in detail having studied it but hey…I like to read more about topics I’m familiar with. If you’re new to the field of behavioural economics, this book would be a good summary. However, it would be worth knowing something about how economics works before you read this.

The book starts strongly by looking at Brexit and other examples of how behavioural economics can and has been used. It goes through some of the major studies and looks at how behavioural economics suggests that rational, economic thinking isn’t really how things work. People can be irrational, selfish and take shortcuts to make decisions because sometimes, it’s all too hard to make one. Examples are given on prospect theory and how behavioural economics has been applied (or not) in recent times in government. The last chapter is a critical look at whether behavioural economics is the breakthrough it seems and whether it makes that much difference. It also introduces briefly quantum economics which uses ideas from quantum physics and mathematics. (The author also has written books on this subject). I enjoyed this chapter the most, despite being a supporter of behavioural economics (I think it can have sound applications in health). It was engaging and had a good pace to it. I found that some of the middle chapters were slow and quite dreary to read. There was no ‘sparkle’ or application of the subject to real life instances – which can be done in non fiction.

I would recommend Misbehaving over this if you are looking to get an understanding of behavioural economics – it’s better paced, interesting and contains a lot of real life examples.

http://samstillreading.wordpress.com

[Sagar Parajuli · Rating 4 out of 5]

Among various books in the series called HotScience - which covers different topics related to science and technology - this book; Psychology, neuroscience, and the human side of economics is included in the behavioral economics section.
It covers, taking frequent references from other books, the basics of how our mind thinks and work; how corporations and politics use them as a tool to influence or alter our preferences and decisions.
For anyone trying, if Behavioural economics is their taste, I would suggest them to try this book, and if the subject intrigues them, then they can get into other books like; Thinking Fast and Slow, Predictably Irrational, and so on.
For me, it was like a revisit of other books that I have read, so I thoroughly enjoyed it.

[Melissa Cobb · Rating 4 out of 5]

Gave a really good overview of behavioural economics and the different behavioural biases and ways that this impacts economic behaviour. It also provides the criticism of economics that I think is certainly necessary, and gives direction to how behavioural economics fits into the wider sphere of economics as a discipline, in a realistic way. However, the book promised to explore how behavioural economics could provide solutions and explanations to our behaviour concerning climate change, and I really felt it could have explored that a lot more than it actually did. Definitely left me hungry to learn more about behavioural economics and was a great starting point to hit off from!

[Moha · Rating 2 out of 5]

The book looks like a collection of notes from an undergraduate student that is reading their first books in behavioral economics (e.g., Kahneman’s overly commercialized book). The best thing about it is that it is short! Occasionally it has some useful quotes and excerpts from other works, but it lacks depth and originality.

Go ahead and take a look if you want to have a first, quick glance at behavioral economics (skip some chapters that use formal language to state the obvious unless you want to create memes that ridicule academic writings — e.g. m, chapter 6)

[Sonja · Rating 4 out of 5]

For someone interested in studying economics in uni, the book reinforced previous learning and introduced a good deal of history and real-life examples into otherwise theoretical concepts. Unlike many authors in the field, Orrell remains fairly objective, and thus provides good arguments for and against the behavioral approach as a whole.

[Sisca]

Frankly speaking I didn't enjoy reading the book as the author was discussing how renowned economists from centuries ago tried to create a mathematical solution for "behavioural economics". There were very little examples on applications especially current affairs. It might be an interesting read for historians though?

[Tobi ﾄﾋﾞ · Rating 3 out of 5]

Would be great for beginners as the book covers many things that are so important and interesting, however the book sets out to cram so much information and theory in that it leaves not enough time to thoroughly explain or explore examples given, so not much of this will stick in my brain no matter how much I want it to. It’s not very good at teaching, if that makes sense.

[Ian McGaffey · Rating 5 out of 5]

This was a great read about the growth and future of behavioral Economics. I enjoyed how it focused on some very relevant current events and how the theories were used. I was unaware that there is a new school of economics hoping to further define the field.

[paloma · Rating 2 out of 5]

at points i enjoyed it, but it seemed repetitive and boring at others. two out of five isn’t a ‘fail’, its more so of a ‘wouldn’t recommend but also don’t regret reading it’. perhaps i enjoy reading economics more when everything’s simplified and it doesn’t feel like glancing at research papers.

[Ivy · Rating 2 out of 5]

Listened to this at x3 speed because I didn’t like the voice of the narrator. Also had a difficult following everything. Basically, people will most likely pick the simplest, quickest, and most comfortable decision.

[Jason · Rating 4 out of 5]

Wasn't bad - concise and easy to read.

[Kieran Nurmi · Rating 4 out of 5]

Quite enjoyable and learning about fallacies at the very least makes it worthwhile.

[Thomas Zarzecki · Rating 3 out of 5]

Summary of the field and books. Quite short so can be used as an overview.

[Eliot Hanrio · Rating 5 out of 5]

Very good introduction to behavioural economics, short and simple.

[Jack Oliver · Rating 4 out of 5]

Honestly, pretty good -- solid introduction to behavioral economics and the psychology that underpins it, and doesn't blindly glorify the school of thought like _a lot_ of fanatics do.

[Louis Lim · Rating 3 out of 5]

Nothing ground breaking and not really written in an interesting fashion either.

[Lukas Lovas · Rating 5 out of 5]

Well written and a good overview.

[Evelyn Amaral Garcia · Rating 2 out of 5]

Very interesting for starters but if you already read ‘thinking fast and slow’ and Dan Ariely, you won’t find here a lot of unknown information.

[Abin Mittu · Rating 3 out of 5]

Presents interesting ideas, but they often feel fragmented and lack a clear, organized flow

[Helena · Rating 4 out of 5]

mentioned "Thinking, Fast and Slow" by Daniel Kahneman so often I wonder if I should have just read that instead

[Darlene MacNeill · Rating 5 out of 5]

Nice introductory book and very readable.

[Joey · Rating 5 out of 5]

Most of the information in this book is from other books (mostly Thinking, fast and slow). Apart from some chapters, the book is very interesting with some good examples.