Putting A Human Face On Economics

Why do people put off saving? Matthew Rabin can answer that

For more than two decades, behavioral economists such as Richard Thaler, Andrei Shleifer, Daniel Kahneman, and the late Amos Tversky have been pointing out all the ways in which people diverge from the hyperrational behavior that is assumed by conventional economics. They procrastinate on saving for retirement. They shop for hours to save pennies, then make snap decisions on big-ticket items. They run up huge credit-card debts even when they have ample savings to pay them off.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.