The Grilled Cheese

You can always count on Dan Ariely to explain difficult or vague concepts simply, succinctly, and so that everybody will understand. I read just about anything of his I come across. The world needs more thinkers like him. Here are his thoughts on his own field (and mine), behavioral economics:

In general, both standard and behavioral economics are interested in the same questions and topics.  The choices people make, the effects on incentives, the role of information etc. However, unlike standard economics, behavioral economics does not assume that people are rational. Instead, behavioral economists start by figuring out how people actually behave, often in a controlled lab environment in which we can understand behavior better, and use this as a starting point for building our understanding of human nature. As a consequence of this different starting point, behavioral economists usually come to different conclusions about the logic and efficacy of almost anything, ranging from mortgages to savings to healthcare in both the personal and business realms.