Giving up the opportunity to sell something does not hurt as much as taking the money out of your wallet to pay for it. Opportunity costs are vague and abstract when compared to handing over actual cash.

One overly simplistic idea is that we can improve student performance by just by giving financial incentives to parents, teachers, or kids. Unfortunately, there is little evidence that such incentives are effective, but nuances matter.

We don’t have to stop inventing abstract models that describe the behavior of imaginary Econs. We do, however, have to stop assuming that those models are accurate descriptions of behavior, and stop basing policy decisions on such flawed analyses.

In complex situations, the Just Maximize Choices mantra is not enough to create good policy.

They have convinced their customers that the entire shopping experience is an orgy of bargain hunting, and go out of their way to reinforce that image.

Roughly speaking, losses hurt about twice as much as gains make you feel good. This.

Of course, coaches are Humans. They tend to do things the way they have always been done, because those decisions will not be second-guessed by the boss. As Keynes noted, following the conventional wisdom keeps you from getting fired.

It is time to stop making excuses. We need an enriched approach to doing economic research, one that acknowledges the existence and relevance of Humans.

Recall that the more insurance you buy, the more you pay, and the right to sue is a form of insurance.

The nudge provided by asking people what they intend to do can be accentuated by asking them when and how they plan to do it. This.