Reference dependence
Study choices relative to gains and losses around a reference point rather than only final wealth or consumption.
Side 238Side Studies / Research
Subject
Behavioral Economics
Purpose
Economic choice studied through systematic deviations from canonical rational-choice models, including reference dependence, limited attention and social preferences.
Structure
05 movesSystem mapV0
Components → constraints → flows → control → failure
Treat deviations as models, not anecdotes.
Behavioral economics is strongest when a psychological regularity produces a precise prediction that improves explanation or policy beyond a flexible story after the fact.
Time inconsistency
Model preference reversals and self-control problems when immediate outcomes receive disproportionate weight.
Limited attention
Examine how salience and cognitive constraints alter which information enters economic choice.
Social preferences
Study fairness, reciprocity and identity when utility depends partly on others' outcomes or intentions.
Behavioral policy
Test nudges, defaults and choice architecture against durable behavior and welfare rather than uptake alone.
Keep the boundaries visible.
bias ≠ irrationality in every context
nudge ≠ welfare improvement
laboratory effect ≠ market magnitude
Questions that organize the Side.
Which behavioral regularities replicate outside tightly controlled tasks?
How can welfare be evaluated when revealed preference is internally inconsistent?
When do market institutions reduce versus amplify behavioral biases?
What should carry weight here?
Pre-registered field experiments and structural estimates are stronger than one-off lab effects; alternative mechanisms and publication bias should be considered.