Behavior Economics

What is Behavior Economics? Definition Focus On: Evolutionary Bases of Behavior Need for Accuracy

The Big Questions Why do we want all of this money and stuff? Why do people want more money when they already have some? Why does what we want have to be the newest, the fastest, the coolest, the most expensive? What do men want vs. what women want? How do companies exploit this knowledge? How can you avoid being exploited? Why do some people have money and stuff, and other people don’t? What happens to all of this stuff when we don’t want it anymore and how will that affect us in the future?

Human Behavior and Money “Markets can be mean to investors who buy when excited and sell when afraid.” EEA vs. modern financial practices/institutions “Lizard Brains” seek out patterns look to the past repeat successful behaviors. Other Human Traits

Why We are Bad at Saving Business Math Long Term Thinking EEA Saving and Investing Defeat is Not and Option

Positive Thinking Pros Cons Modern Traps

The “Sensible Model” of Consumerist Capitalism Human instincts for trying unconsciously to display certain desirable personal traits (the driving force) + current social norms for displaying those traits through certain kinds of credentials, jobs, goods and services + current technological abilities and constraints + certain social institutions and ideologies + historical accident and cultural inertia = early 21st century consumerist capitalism

Human Instincts Q: We don’t really need all of this money, prestige and stuff to survive, so why do we spend 4 or more years in college, 40 plus hours a week, for 40 or more years of our lives in order to have a college degree in order to have a better job in order to make more money? A: Short answer: Sexual Selection. Q: Then why do women do it?

Human Behavior Male Conspicuous Consumption Female Conspicuous Consumption Juvenile Conspicuous Consumption culture-specific indicators of fitness higher status

Human Fitness EEA Fitness Indicators Modern Fitness Indicators Physical Personality Cognitive “Liquid Fitness” Consumer Decision-making

Stuff Categories of Stuff Trait Displays Pleasure Button-Pushers Survival Basics

Marketing Miller’s Theory Advertising and Branding

Power to the People Haves and Have-Nots Basic Drives Corporate Exploitation of Drives

College Stats Reasons Average American Debt Average Yearly Incomes of Varying Degrees of Education Professional Doctoral Master’s Bachelor’s Some College High School Average American Debt

Sources Mean Markets and Lizard Brains, by Terry Burnham-Author of Mean Genes Spent, by Geoffrey Miller