Behavioral economics—loosely defined as an approach to examining human behavior and decision making that integrates research and evidence from psychology and related fields such as sociology, ...

Behavioral economics studies how psychological tendencies influence economic decisions and outcomes. Concepts such as loss aversion and bounded rationality explain why people evaluate outcomes ...

In its early days, behavioral economics was focused on documenting human deviance from rational action. It began as a challenge to the mainstream neoclassical economics model, which assumes people are ...

Visit NAP.edu/10766 to get more information about this book, to buy it in print, or to download it as a free PDF. Behavioral economics has had a growing influence on public policy over the past ...