The Nature of the BEast: What Behavioral Economics Is Not
Matthew Darling, Saugato Datta, and Sendhil Mullainathan
People are complex; they defy easy summary. Like Walt Whitman, we all contain multitudes. As a discipline, economics has been successful in part because it has ignored this complexity. Instead it has focused on explaining the institutions in which decisions are made — with institutions ranging from capitalism to communism, from perfect competition to monopolies, and from rock-paper-scissors to the prisoner’s dilemma.
Behavioral economics differs from standard economics in that it uses a more realistic (and more complicated) model for people; it differs from psychology in that it maintains the focus on institutions and the contexts in which decisions are made. Behavioral economists study how the context of decisions interacts with our expanding understanding of human psychology. By combining the insights from these two very different perspectives, behavioral economists have been able to reveal new depths in ourselves.
The short 4 page essay can be downloaded for free from the website of the Center for Global Development, an independent, nonprofit policy research organization “dedicated to reducing global poverty and inequality and to making globalization work for the poor”.
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Experientia has now its own Twitter feed. Four months of Putting People First posts and other links have already been uploaded. If you followed Experientia on Twitter through the feed of its CEO, Mark Vanderbeeken, make sure to now also follow the company (but don’t unfollow Mark, who will keep on tweeting away). And while […]
Experientia’s Putting People First blog has been redesigned. It is now entirely responsive, allows for easier browsing, searching, and filtering, and features larger images on the posts. The entire history of posts remains accessible as before. We are still tweaking things and welcome any feedback.
Why the world needs anthropologists – Coming out of the ivory tower Location: Padua, Italy, Centro Culturale Altinate/San Gaetano Date and time: Friday, 5 December 2014, 13:00 – 18:00 Padua, Italy, 5 December 2014 – The second edition of the international symposium of applied anthropologists attempts to erase the boundary between ‘pure’ and ‘applied’ anthropology, […]
Last year Experientia designed the interface of an ATM of UniCredit, a major Italian bank. The interface is now rolled out across the bank’s ATMs in Italy, to great satisfaction of the bank and the customers alike, since interaction speed is much faster and error rates went down dramatically. Last year UniCredit and Experientia also […]
In September 2014 Experientia gave a presentation on working as UX professionals with financial institutions at the EPIC conference in New York. The paper is now available on the EPIC site in HTML and PDF versions (free registration req’d). Abstract Application of a user-centered approach rooted in ethnographic methodologies facilitates a major European bank’s transition […]