Standard vs. Behavioral Economics


Dan Ariely — the guy playing Behavioral Economics, author of the book  Predictably Irrational: The Hidden Forces That Shape Our Decisions and the James B. Duke Professor of Behavioral Economics at Duke University believes that “life with fewer market norms and more social norms would be more satisfying, creative, fulfilling and fun.

And he thought this while at Burning Man.

Finally! Someone gets it. Someone is talking about the giant pink elephant in the economics classroom. Human beings are not always rational decision makers in the economic market. I’ve worked in marketing, I should know. Even Adam Smith idealized that Christianity would be the social norm that kept people from exploiting capitalism; Look what happened with that. To me, this fully enforces Ariely’s idea that it would far more prudent to have formalized social norms than market norms.


Dan Ariely talking about his book at Google HQ below.

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