Misbehaving (book) Misbehaving (book) Misbehaving: The Making of Behavioral Economics is a book by Richard Thaler, economist and professor at the University of Chicago's Booth School of Business. He won the Nobel Prize for economics in 2017. The book builds on Thaler's work as a Behavioral Economist in trying to present an alternate view point that humans bring along behavioral biases, are error prone, and are not always rational. This view point builds on his work from his previous book, Nudge published in 2008. Thaler ties this to the effect on markets, which are otherwise expected to be efficient. Thaler uses the
Nudge (book) placing healthy foods in a school cafeteria at eye level while putting less-healthy junk food in harder-to-reach places. Individuals are not actually prevented from eating whatever they want, but arranging the food choices that way causes people to eat less junk food and more healthy food. Sunstein and Thaler apply the idea of nudges in the context of choice architecture to propose policy recommendations in the spirit of libertarian paternalism. They have recommendations in the areas of finance, health, the environment, schools, and marriage. They believe these problems can at least be partially addressed by improving the choice architecture. Thaler