Applied Behavioral Economics: Theory, Method, and Practice for Driving Decisions

This book is a comprehensive and accessible guide to understanding how human behavior influences economic decision-making, and how this knowledge can be applied for the public good. Written with clarity and purpose, the book explores the foundations and practical tools of Behavioral Economics, highlighting its transformative power across sectors and contexts. Developed by consultants, academics, and specialists from diverse fields of practice, companies, and universities, this book offers a unique blend of theoretical rigor and real-world insight. Readers are invited to explore how actual decisions often diverge from the assumptions of perfect rationality, shaped instead by biases, heuristics, emotions, and context. The text illuminates why we overspend with credit cards, undervalue long-term rewards, or fall prey to manipulation through “dark patterns.” Structured in four parts, the book first examines the intellectual evolution and emerging digital challenges of the discipline. It then introduces key methods used by “choice architects” in experimental and applied settings. A central section offers rich case studies across domains such as finance, health, sustainability, education, and public policy. Finally, the book explores how to measure the impact of behavioral interventions using data-based methods. Through real-world examples, ethical reflections, and practical tools like nudges, this book equips students, practitioners, and policymakers to design interventions that promote well-being without restricting freedom. In an era of digital transformation and AI, it is both a call to action and a roadmap for using economics to serve society more effectively.