People aren't always rational. This insight, familiar to brand managers, is the basis of behavioral economics, which uses psychological insights to predict these sometimes illogical choices. Of late, some behavioral economists have left their labs, venturing into practical arenas like policy-making, product development, and marketing, with strategies for everything from money management to reducing smoking to dating.

The impact of peer pressure is a popular recent topic among behavioral economists. A new experiment by the Sacramento Municipal Utility District suggests that feedback about neighbors leads to reduced energy consumption.Continue reading...

Verizon Wireless has gone to great lengths to tint its brand green. But as Ad Age reports, the mobile communications giant took a big step backwards when it enraged environmentalists by refusing to pull its sponsorship of a West Virginia Friends of America Rally over Labor Day weekend, organized by Massey Energy.

Why would environmentalists be upset? First, Massey Energy uses mountaintop removal, a coal mining process which involves chopping down forests, removing topsoil, and blasting away up to 1,000 feet of ground. Continue reading...