{"id":6388,"date":"2018-02-05T15:35:31","date_gmt":"2018-02-05T15:35:31","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/outcome-behavioral-economics\/"},"modified":"2024-04-25T21:43:49","modified_gmt":"2024-04-25T21:43:49","slug":"introduction-to-behavioral-economics","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/chapter\/introduction-to-behavioral-economics\/","title":{"raw":"Introduction to Behavioral Economics","rendered":"Introduction to Behavioral Economics"},"content":{"raw":"<h2>What you'll learn to do:\u00a0describe the behavioral economics approach to understanding decision making<\/h2>\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/27172834\/16203523624_093d6a7371_o.jpg\"><img class=\"aligncenter wp-image-7809 \" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/27172834\/16203523624_093d6a7371_o.jpg\" alt=\"Shoppers sit outside of a clothing store.\" width=\"639\" height=\"427\" \/><\/a>\r\n\r\nIf a friendly stranger handed you $20, how would you feel? What if you lost $20 the next week? Do you think that you'd feel sad about it, or would just be happy that you broke even? In this section, you'll see that most people would still be sad about the $20 loss. Economic decisions are not always logical. Read on to find out why!","rendered":"<h2>What you&#8217;ll learn to do:\u00a0describe the behavioral economics approach to understanding decision making<\/h2>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/27172834\/16203523624_093d6a7371_o.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-7809\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/2042\/2018\/02\/27172834\/16203523624_093d6a7371_o.jpg\" alt=\"Shoppers sit outside of a clothing store.\" width=\"639\" height=\"427\" \/><\/a><\/p>\n<p>If a friendly stranger handed you $20, how would you feel? What if you lost $20 the next week? Do you think that you&#8217;d feel sad about it, or would just be happy that you broke even? In this section, you&#8217;ll see that most people would still be sad about the $20 loss. Economic decisions are not always logical. Read on to find out why!<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-6388\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Introduction to Behavioral Economics. <strong>Authored by<\/strong>: Steven Greenlaw and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Shoppers on Oxford Street near Marble Arch, London.  People and Paths. <strong>Authored by<\/strong>: Gyles Glover. <strong>Provided by<\/strong>: flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/gylesglover\/16203523624\/\">https:\/\/www.flickr.com\/photos\/gylesglover\/16203523624\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":29,"menu_order":12,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Behavioral Economics\",\"author\":\"Steven Greenlaw and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Shoppers on Oxford Street near Marble Arch, London.  People and Paths\",\"author\":\"Gyles Glover\",\"organization\":\"flickr\",\"url\":\"https:\/\/www.flickr.com\/photos\/gylesglover\/16203523624\/\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"15ca4c29-7cc3-4810-b47e-e1c37dc6f930","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-6388","chapter","type-chapter","status-publish","hentry"],"part":6365,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/users\/29"}],"version-history":[{"count":6,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6388\/revisions"}],"predecessor-version":[{"id":10154,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6388\/revisions\/10154"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/parts\/6365"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapters\/6388\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/media?parent=6388"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/pressbooks\/v2\/chapter-type?post=6388"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/contributor?post=6388"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-microeconomics\/wp-json\/wp\/v2\/license?post=6388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}