Behavioral Economics

The post-holiday season is a time when many people look back at the memories they made and the money they spent. According to behavioral economist Dan Ariely, many of the financial decisions made during this time, and throughout the year, are based on instincts or emotions rather than value. 

The post-holiday season is a time when many people look back at the memories that were made, and the money that was spent. According to behavioral economist Dan Ariely, many of the financial decisions made during this time and throughout the year, are based on instincts or emotions rather than value.

With the growth of popular technologies like taxi apps and mobile payments, Ariely argues people are also becoming increasingly distanced from the physical pain of spending which can be helpful for keeping unnecessary spending in check.

Dan Ariely is a world renowned behavioral economist at Duke University.
nrkbeta / Flickr Creative Commons

Dan Ariely credits his career to an accident that left him in a hospital bed for three years.

At age 17, Ariely suffered from third degree burns on most of his body after a chemical explosion.

It was his inability to move for long periods of time that allowed him to observe the nuances of human behavior.