The Influence of Social Norms on Economic Behavior

This chapter explores the interplay between social norms and individual economic choices, using anecdotes to highlight how relationships and societal perceptions shape decision-making. It examines tipping behavior and cognitive biases, illustrating how people often act against pure self-interest to adhere to social expectations. The discussion also delves into the historical context of behavioral economics, emphasizing the importance of understanding systematic biases and their effects on human decision-making.