Behavioral Economics

Behavioral economics studies how people actually make choices, and how habits, shortcuts, emotion, and limited attention can change what happens.

The field argues with itself.

Shortcuts are not always mistakes.

A simple rule can beat a complicated calculation when information is scarce. Ask where a shortcut works, not only where it fails.

Gerd Gigerenzer · the field's loudest internal critic

Sometimes the problem is the system, not the person.

An individual fix—the i-frame—can help without replacing a structural fix—the s-frame. Good policy asks which level caused the problem.

Nick Chater & George Loewenstein · the i-frame and the s-frame