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Why Smart People Make Big Money Mistakes
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An introduction to the new science of behavioral economics.
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Chapter 1
Not All Dollars Are Created Equal
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How "mental accounting" can help you save or cost you money.
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Chapter 2
When Six Of One Isn't Half A Dozen Of The Other
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How "loss aversion" and the "sunk cost fallacy" lead you to throw good money after bad.
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Chapter 3
The Devil That You Know
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How the "status quo bias" and the "endowment effect" make financial choices difficult.
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Chapter 4
Number Numbness
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"Money illusion," "bigness bias," and other ways that ignorance about math and probabilities can hurt you.
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Chapter 5
Anchors Aweigh
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Why "anchoring" and "confirmation bias" lead you to make important money decisions based on unimportant information.
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Chapter 6
The Ego Trap
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"Overconfidence" and the price of thinking that you know more than you do.
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Chapter 7
I Herd It Through The Grapevine
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"Information cascades" and the danger of relying too much on the financial moves of others.
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Conclusion: Now What?
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Principles to ponder and steps to take.
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Postscript: Psychic Income
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Acknowledgments
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