This is a great video to watch over the holiday weekend. Prof. Thaler does a great job walking through behavioral finance/economics.
He also has a paper on related topics:
There has been growing interest in the field come to me known as “behavioral economics” ... The new approach to economics should include two different kinds of theories: normative models that characterize the optimal solution to specific problems and descriptive models that capture how humans actually behave...If everyone includes all the factors that do determine economic behavior, then the field of behavioral economics will no longer need to exist.