The text is organized into logical segments that challenge the standard neoclassical model of "Homo Economicus"—the hyper-rational, self-interested actor.
Just utilizes experimental literature and news items to illustrate several critical psychological biases: introduction to behavioral economics david r just pdf
Attributing a higher value to an object simply because one owns it, which can lead to inefficient market outcomes. The text is organized into logical segments that
The tendency to stick with a default option, such as an existing health insurance plan, even when better alternatives are available. Practical Applications and Pedagogy Key Behavioral Concepts Explained
Changing a decision based solely on how options are presented, such as preferring "90% fat-free" over "10% fat".
Just examines behavioral anomalies under risk, such as loss aversion —the tendency to prefer avoiding losses over acquiring equivalent gains—and how individuals process limited or complex information.
Unlike traditional models that assume total selfishness, Just incorporates theories on fairness, reciprocity, and how peer behavior (social normalization) shapes economic outcomes. Key Behavioral Concepts Explained