Category: Behavioral Economics

When it comes to retirement, there are a lot of myths out there. Perhaps the most prevalent one is that retirement is a time when you can finally relax and enjoy your golden years. Unfortunately, this simply isn’t true for most people. For many, retirement is a time of financial insecurity. With rising costs of… Continue reading 20 Retirement Planning mistakes and myths to avoid

A poison pill is a defensive tactic used by a company to make itself a less lucrative bid as an anti-takeover measure. The poison pill usually takes the form of a clause in the company’s charter that allows shareholders to buy shares at a discount if the company is acquired. The poison pill makes the… Continue reading Poison pills in the business world

Anchors are a powerful marketing tool used to influence a customer’s purchasing decision. Anchors can be either internal or external and can be either physical or perceived. Anchors can be either external or internal. External anchors are cues in the environment, such as prices and other people’s opinions. Internal anchors are personal beliefs or feelings… Continue reading Anchors in marketing to benefit your sales

The spillover effect happens when events in one nation affect the economies of other countries. For example, an earthquake, stock market crisis, invasion, or another macro event may have adverse, neutral, or positive spillover effects.  Understand the spillover effects of a domestic event One of the most important things you can do to avoid spillover… Continue reading Spillover Effects: How to avoid and deal with them

Nudge theory is the notion that subtle interventions can lead people to make better choices. For instance, if you put fruit in reach of your employees, they are more likely to eat healthier snacks during the day. The theory has many applications for businesses like increasing productivity and boosting morale.A growing number of business owners… Continue reading Nudge Theory in Business | Secrets to positivity

Behavioral economics focuses on the individual’s economic decision-making processes, whereas behavioral finance focuses studies how individual behavior, including irrational behavior/cognitive biases, impacts financial decisions and markets. They are sometimes used interchangeably.  Some economists believe that behavioral economics is a better label for their field because it addresses human behavior in labor markets, consumer markets, and… Continue reading behavioral economics vs behavioral finance: All you need to know