Economic psychology had its original focus on the rationality assumptions underlying economic theory. A much broader view of the psychological underpinnings of economics was presented in the voluminous La psychologie économique by Tarde (1902a). This work was neglected or rejected by...

The book focuses on the way in which investors process information and form expectations about future gains. It argues that humans fall short of the perfect information processing required by theory, and that their expectations are based on more than just future company earnings.

This innovative book provides an up-to-date assessment of the factors accounting for the differences between people who save and people who do not save money.