“Why behavioral economics, not psychology or economics?”
Make choices that satisfy you without being swayed by emotions.
36 Psychological Laws You Need to Know to Get Off

We make choices dozens of times a day.
Even when ordering delivery food, I try to make the most reasonable decision by comparing discounts and delivery fees.
But on the other hand, we sometimes impulsively buy expensive items after seeing ads on social media, or we buy things we don't need just because our friends bought them.
Why do we, who strive for rational choices, sometimes make irrational and impulsive choices? Why do we regret choices we made? It's because we are more swayed by emotions and delusions than we realize.


Traditional economics assumes that humans always make rational and reasonable choices, but in reality, we are different.
We are swayed by the gaze of others, open our wallets at the words "discount until today," and choose immediate satisfaction over an uncertain future.
So what should we do? We need to learn about "behavioral economics," which is neither psychology nor economics.
Behavioral economics helps us understand the psychological laws that operate at every moment of choice, and reveals the reasons for our actions that we were unaware of.


"Minimal Behavioral Economics" is an introductory book to behavioral economics for those of us who don't want to have any more regrets.
It opens with stories from everyday life, divided into six topics: relationships, conversations, goals, choices, money, and happiness. It then explores thirty-six essential behavioral economics theories, from the primacy effect to anchoring, framing, and heuristics, along with experiments verified by renowned scholars, including sociologists and psychologists, to find answers.
Behavioral economics is an essential tool for avoiding choice traps and making self-sufficient choices.
If you've ever questioned your choices, even once, why? Open "Minimal Behavioral Economics."
The moment I understand 'why I did that', my next choices will definitely be different.

There is also research4 that shows that when the similarity between the interviewer and the applicant is high in an interview situation, the interviewer feels favorable toward the applicant and has a positive influence on the decision.
This feeling of liking someone who is similar to you is called the 'similarity effect'.
Since you can have deeper and more detailed conversations with someone you have something in common with, it's easier to feel good about them and become closer to them.
If you have a friend you want to become close with, try to find something similar about yourself and start a conversation.
Once you find the connection, it will be easier to approach.
--- From "What should I do when I want to become close to someone?"

The reason Starbucks hides the small size in Korea but produces and promotes an even smaller size in India can be seen as a pricing strategy to open the wallets of as many consumers as possible.
Applying different prices to different markets or people who are willing to pay the maximum amount is called price discrimination.

The economic law that 'same goods should cost the same price' has long been accepted, but this law is gradually being broken.
Amazon, a major American online shopping mall, applies different prices depending on the time of day, season, and even person.
Dynamic pricing means that the price changes in real time.
If you have a shopping mall you frequent, take a closer look!
--- From "Find out what they really want?"

There is someone who conducted an experiment to find out whether studying in a place similar to the exam environment makes you remember more of what you studied.
British psychologists Duncan Godden and Alan Baddeley.
They conducted an experiment on divers to memorize words.

We had divers memorize words while underwater, and then recall those words both underwater and out of the water.
Surprisingly, I recalled more words underwater than out of the water.
After that, we did the same experiment after having them memorize the words out of the water, and in this case, they remembered more words out of the water.
The environment in which you memorized the words influenced how you actually recall them.
--- From "Where is the best place to prepare for an important exam?"

Generally, people want to keep their word.
Because when other people see me, I want to be seen as someone who has the will to do something, rather than someone who talks nonsense and is frivolous.
When people tell others about their goals and thoughts, they tend to believe in them more and stick to them without even realizing it.
This is called the Public Commitment Effect.
When you openly tell others about your goals, they often help you achieve them.
--- From "A Sure Way to Achieve Your Goals?"

When you go to a buffet restaurant, don't you sometimes find yourself eating more even when you're full? Thinking, "I paid this much, so I should eat this much."
I have had the experience of overeating and feeling bloated.
Money that has already been paid and cannot be returned is called a 'sunk cost', and sunk costs must be ignored to make rational choices.
--- From "Uncomfortable Sneakers, Why Can't I Throw Them Away?"

If you want to go to a good restaurant, how do you find it? I search on restaurant reservation apps or portals.
Many people have left reviews, and high ratings somehow make you feel more trustworthy.
Choosing based on ratings and reviews.
I'm sure I'm not the only one.
So, wouldn't ratings be like money? But what if those ratings and reviews were revealed to be manipulated? Trust would be shattered.
There are restaurants that have built up trust with customers and accumulated star ratings, but let's say some restaurants manipulate their star ratings.
That would ultimately be taking money away from restaurants that have honestly earned their stars.
A trustworthy system creates value in itself and is valued as capital.
In a trust society, the rating is money.
The level of trust in a society is, of course, closely related to its economic prosperity.
--- From "Trust is Money"

I have a loved one and I want to give them a gift to express my feelings.
Is it better to give one large gift or many smaller gifts? The answer is that giving many smaller gifts is much more effective.

Now, let's assume a situation where you receive several small gifts.
How about receiving 10 won 200,000 times? Receiving small gifts multiple times is great, but if each gift is too small, it won't feel like you've received it and won't be effective.
Even a small gift should be of at least the minimum value that can be recorded in my heart's ledger.
The minimum price recorded in the ledger of the mind is called the 'booking price'.
The bottom line is that it's better to give gifts that exceed the booking price in multiple installments.

--- From "Several small gifts are better than one big gift"