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05-12-2018

Minor change, dramatic impact

Behavioral economics questions the underlying premise that people are inherently rational decision-makers. Based on research by Nobel Prize winners Robert Shiller and Daniel Kahneman, it states that our decisions are largely driven by range of factors (such as impulses, habits and social norms) that operate beneath our consciousness. And, to paraphrase author Dan Ariely, these non-rational forces are both consistent and predictable, which suggests that they can be studied, understood and leveraged.

 

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