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Podcast 45: Gary Belsky, Behavioral Economics

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Today’s guest on the Consumerism Commentary Podcast is Gary Belsky, author of the book Why Smart People Make Big Money Mistakes and How to Correct Them: Lessons from the Life-Changing Science of Behavioral Economics and Editor-In-Chief of ESPN the Magazine.

Gary and Tom Dziubek discuss behavioral economics and how understanding how we make decisions involving money can help us make better decisions.

If you like this podcast, please vote for us in the First Annual Plutus Awards for “Best Personal Finance Podcast.” Thanks!

Consumerism Commentary Podcast #45
Production Number: S02E19
Segment Number: 62

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Table of contents

[00:00] Introduction from Flexo
[00:32] Interview with Gary Belsky
[00:47] Gary’s background
[03:44] Behavioral economics
[04:36] “Bonuses” vs. “Rebates”
[06:00] Mental accounting
[09:42] Understanding and combating your weaknesses
[12:12] The sunk cost fallacy
[14:06] Maximizers and satisficers
[16:24] Ignoring the base rate
[17:50] Self-insuring yourself through savings
[18:24] Understanding anchoring
[19:37] Fighting overconfidence in personal finance
[22:10] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

Updated December 20, 2011 and originally published February 28, 2010. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 3 comments… read them below or add one }

avatar Financial Samurai

Good score! I wonder how much Gary makes as the Editor in Chief of ESPN magazine, and whether he gets to meet all the famous pro athletes! This is an example of someone who is putting his interest and background to good use by writing a book!

Good point on labeling the government stimulus checks BONUS checks instead of rebate checks.

Fantastic examples and reasons why framing is important. Mental accounting is important and dangerous. Gary, just stay away from the car dealers!!

Love behavioral economics. I firmly believe PF is so much about psychology.

Best, Sam

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avatar Tom Dziubek

I know he’s been rubbing a few elbows…when I revealed my Oakland Raiders allegiance he told me he sat next to Jim Plunkett at the ESPYs. Lucky guy.

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avatar Jeffrey

I find your podcasts to be consistently good. Tom Dziubek is a good host, asking intelligent questions. I have sampled quite a few podcasts, especially from bloggers I have liked. Yours is the best.

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