This book is a mischievous but enlightening study of various human shortcomings. Traditional economics considers rational forces to regulate everything. Behavioral economics knows the real story. Richard Thaler has spent his career studying the idea that man is the center of the economyâ€"and that we are the place of error. Behavioral economics is now very influential, not only changing the way we think about money, but also ourselves, our world, and all kinds of everyday decisions. Whether it's when buying watches, selling tickets, or applying for mortgages, we all experience bias and make decisions that deviate from the standards of rationality used by economists. In other words, we behave erroneously. Although initially underestimated by economists, the study of human error and its influence on markets is now driving efforts to make better decisions in life, business, and government. By combining the latest discoveries of human psychology and a practical understanding of incentives and market behavior, Thaler sheds light on how to make smarter decisions in an increasingly confusing world. He reveals how behavioral economic analysis opens up new ways of looking at everything from household finances to office divisions in new buildings, TV quiz shows, sports transfer seasons, and businesses like Uber. When economics meets psychology, the impact on individuals, managers, and policymakers is both profound and exciting.