Best Books on Behavioral Economics

Introduction

Behavioral economics explains how psychological biases affect financial decision-making. These books reveal why markets are often irrational.

1. Thinking, Fast and Slow – Daniel Kahneman

📖 Why Read It?
A groundbreaking book on human decision-making, explaining how biases shape financial choices.

2. Misbehaving: The Making of Behavioral Economics – Richard Thaler

📖 Why Read It?
A fun and informative introduction to behavioral economics from a Nobel Prize-winning economist.

3. Nudge – Richard Thaler & Cass Sunstein

📖 Why Read It?
Explains how small behavioral changes influence decision-making in finance and policy.

4. Predictably Irrational – Dan Ariely

📖 Why Read It?
Shows how emotions and biases cause investors to make irrational choices.

5. The Psychology of Money – Morgan Housel

📖 Why Read It?
Explores how psychology affects investing and wealth-building decisions.

📌 Keywords/Tags: Behavioral Economics, Psychology of Investing, Decision-Making, Financial Biases