"What can a bunch of college kids playing games in a lab tell us about risk management or compensation plans? A lot, as it turns out. Using laboratory science, field experiments, and examples from well-known companies, Chen and Krakovsky reveal the secrets of how to apply the scientific method to your business practices."
-Daniel H. Pink, author of Drive and A Whole New Mind
"Marina and Kay-Yut show how businesses can understand irrational behavior and, more important, use this understanding to create better practices."
-Dan Ariely, author of Predictably Irrational, and The Upside of Irrationality
"It's astonishing that Chen's small laboratory experiments can have such enormous implications for major corporations and small businesses alike, but the results speak for themselves. Any smart business needs a 'moneylab' of its own."
-Ori Brafman, author of Sway and Click
"Of the many recent books on behavioral economics (including my own), none are as effective or insightful as Secrets of the Moneylab in applying the findings from this relatively new and innovative science to the practical world of business. Chen and Krakovsky take you to the front lines of research revealing what people actually do-instead of what theory says they should-and explain how you can put that research to good use in your own business. Every chapter is a gem of practical wisdom grounded in solid science. Read it and be prepared to change your approach."
-Michael Shermer, publisher of Skeptic, columnist for Scientific American, and author of The Mind of the Market
"Experimental economics methods give corporations an inexpensive tool for avoiding costly mistakes. Chen understands how to put the science to work and the value of doing so."
-Charles R. Plott, Edward S. Harkness Professor, of Economics and Political Science, California Institute of Technology
"Secrets of the Moneylab is an entertaining introduction to the economic principles of risk, choice, trust, and consumer behavior."
-Preston McAfee, vice president and research fellow, at Yahoo! Research and author of Competitive Solutions
"This is a well-written book that clearly articulates the value that experimental economics brings to businesses."
-Bernardo Huberman, Senior HP Fellow and Director of the Social Computing Lab at HP Labs
"This is a brilliant book. It shows you how to apply powerful behavioral economics methods to revolutionize the way you run your business. It is a must- read for any scientifically-minded manager".
-Teck-Hua Ho, William Halford Jr. Family Professor of Marketing, Haas School of Business, University of California, Berkeley
About the Author
leads Hewlett Packard's experimental economics lab-the first such lab at any company-which he established in 1994 immediately after earning his Ph.D. from Caltech. His research has been used in HP's Consumer Business Organization, Procurement, and several organizations in the printer division. His laboratory designed part of the standard contract between Hewlett-Packard and U.S. retailers like Wal-mart and Best Buy. His work has been featured in Scientific American, Risk Magazine, Newsweek, Financial Times, The Wall Street Journal
, BusinessWeek.com, and Portfolio.com. Marina Krakovsky
is a journalist who frequently writes on topics at the intersection of science and business. Her credits include Scientific American, Slate, Discover, Psychology Today, O, The Oprah Magazine, The Washington Post
, and The New York Times Magazine
--This text refers to the