Over the last few decades behavioral economics has revolutionized the discipline. It has done so by putting the human back into economics, by recognizing that people sometimes make mistakes, care about others and are generally not as cold and calculating as economists have traditionally assumed. The results have been exciting and fascinating, and have fundamentally changed the way we look at economic behavior. This textbook introduces all the key results and insights of behavioral economics to a student audience. Ideas such as mental accounting, prospect theory, present bias, inequality aversion and learning are explained in detail. These ideas are also applied in diverse settings, such as auctions, stock market crashes, charitable donations and health care, to show why behavioral economics is crucial to understanding the world around us. Consideration is also given to what makes people happy, and how we can potentially nudge people to be happier. This new edition contains expanded and updated coverage of several topics and applications, including fraud and cybercrime, cryptocurrency, public health messaging, and the COVID-19 pandemic. The companion website is also updated with a range of new questions and worked examples. This book remains the ideal introduction to behavioral economics for advanced undergraduate and graduate students.

Microeconomics and Behaviour, third edition, is an accessible yet intellectually challenging and engaging textbook for students. It develops core analytical and technical tools and embeds them in a collection of real-world examples and applications to illuminate the power and versatility of the economic way of thinking. With this approach, students develop economic intuition and are stimulated to think more deeply about the technical tools they learn, and to find more interesting ways to apply them. This enables students to not just understand microeconomics, but to think like economists themselves, and to develop a lasting interest in the discipline. Key Features * Fully updated chapters, including new and expanded material on international labour markets, the gig economy, behavioural game theory and nudge theory. * Extensive pedagogical features such as examples, key terms and definitions, in-chapter exercises, chapter summaries, and review questions and problems. * Economic Naturalist examples that show how economic principles can be used to explain experiences and observations of everyday life. New examples include: "Why do firms benefit from the gig economy?", "Why is self-checkout becoming the norm in shops?", and "Why do online retailers have flagship stores?". Connect (R) Resources Available with McGraw-Hill Education's Connect (R), the well-established online learning platform, which helps faculty and institutions improve student outcomes and course delivery efficiency. In addition to maths tutorials and SmartBook, the awardwinning adaptive reading experience, the new Connect (R) features for this edition include: * Economic Application Based Activities that provide students with valuable practice, using problem solving skills to apply their knowledge to realistic scenarios. Students progress from understanding basic concepts to using their knowledge to analyse complex scenarios and solve problems. * Economic Naturalist graphing questions which have been newly developed to complement this key pedagogical feature from the textbook. * Interactive Graphs that help students see the relevance of the subject matter by providing visual displays of real data for students to manipulate. All graphs are accompanied by assignable assessment questions and feedback for students. To learn more, visit mheducation.co.uk/connect

Over the last few decades behavioral economics has revolutionized the discipline. It has done so by putting the human back into economics, by recognizing that people sometimes make mistakes, care about others and are generally not as cold and calculating as economists have traditionally assumed. The results have been exciting and fascinating, and have fundamentally changed the way we look at economic behavior. This textbook introduces all the key results and insights of behavioral economics to a student audience. Ideas such as mental accounting, prospect theory, present bias, inequality aversion and learning are explained in detail. These ideas are also applied in diverse settings, such as auctions, stock market crashes, charitable donations and health care, to show why behavioral economics is crucial to understanding the world around us. Consideration is also given to what makes people happy, and how we can potentially nudge people to be happier. This new edition contains expanded and updated coverage of several topics and applications, including fraud and cybercrime, cryptocurrency, public health messaging, and the COVID-19 pandemic. The companion website is also updated with a range of new questions and worked examples. This book remains the ideal introduction to behavioral economics for advanced undergraduate and graduate students.

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Over the last few decades behavioral economics has revolutionized the discipline. It has done so by putting the human back into economics, by recognizing that people sometimes make mistakes, care about others and are generally not as cold and calculating as economists have traditionally assumed. The results have been exciting and fascinating, and have fundamentally changed the way we look at economic behavior. This textbook introduces all the key results and insights of behavioral economics to a student audience. Ideas such as mental accounting, prospect theory, present bias, inequality aversion and learning are explained in detail. These ideas are also applied in diverse settings such as auctions, stock market crashes, charitable donations and health care, to show why behavioral economics is crucial to understanding the world around us. Consideration is also given to what makes people happy, and how we can potentially nudge people to be happier. This new edition contains expanded and updated coverage of contract theory, bargaining in the family, time and risk, and stochastic reference points, among other topics, to ensure that readers are kept up to speed with this fast-paced field. The companion website is also updated with a range of new questions and worked examples. This book remains the ideal introduction to behavioral economics for advanced undergraduate and graduate students.