Behavioral Science Explains the Failure of Free Markets

Most of you know me as a behavioral science guy, but I have to make a confession: my initial training is in Economics and business administration. Being born in a country with a communist dictatorship, with a centralized economy and spending much of childhood and teenage years in a chaotic backwards transition to market economy, I firmly believed in the virtues for free markets. Perhaps because of this experience and seeing what free markets can do in a society unaccustomed to how they work, made me think hard if free markets are as virtuous as I thought them to be. And the answer is ambivalent: on the one hand, yes! It is absolutely obvious that a free market economy is far better than a ce

Behavioral Design: Tricks, Cheats and True Value Interventions. The Wide Array of Behavioral Science

For quite some time now I have been involved in bringing behavioral science into practice and the beauty of this (still emerging) field is its diversity. In essence, behavioral science is about understanding how we really think (make judgments and decisions) and what influences what we do. The practical applications of behavioral science are hugely diverse: it is applied in public policy, in marketing and connected fields such as advertising, market research retail design etc., in product and service design, in the financial sector etc. Recently I was invited to take part in a workshop on applying behavioral science in fisheries. So it’s not exactly far-fetched to claim that Behavioral Scien

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