Once heretical, behavioral economics is now mainstream. Money managers employ its insights about the limits of rationality in understanding investor behavior and exploiting stock-pricing anomalies. Policy makers use behavioral principles to boost participation in retirement-savings plans. Marketers now understand why some promotions entice consumers and others don’t.
Very Interesting Article available here: http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/The_ca...