topic modern ★ seed

Behavioral Economics

Humans are not rational utility maximizers. Kahneman, Tversky, and Thaler showed that cognitive biases, heuristics, and framing effects systematically distort economic decisions.

#behavioral #biases #heuristics #bounded-rationality

Sub-topics

Daniel Kahneman concept

Nobel laureate (2002). A psychologist who won the economics Nobel. Prospect theory (1979, with Tversky) showed that losses loom larger than gains and people evaluate outcomes relative to reference points.

Richard Thaler concept

Nobel laureate (2017). Nudge (2008) showed how choice architecture can improve decisions without restricting freedom. Discovered the endowment effect and championed libertarian paternalism.