Misbehaving: The Making of Behavioral Economics

by Richard H. Thaler

Behavioral economics is more interesting and more fun than regular economics. It is the un-dismal science.

The difference between losing $10 and $20 feels much bigger than the difference between losing $1,300 and $1,310.

The fact that a loss hurts more than an equivalent gain gives pleasure is called loss aversion. It has become the single most powerful tool in the behavioral economist’s arsenal.