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

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Psychological Value ▲ │ / Gain Region │ / │ / │ / │ / ───────────────────────┼────────────────────────► Losses │ Gains \ │ \ │ \ │ \ │ \ │ Loss Region ▼ │ Intertemporal Choice and Present Bias

For those not affiliated with a university, your local public library can request a digital scan of specific chapters via ILL. You won’t get the whole book, but you can get the exact sections you need.

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By applying behavioral insights, companies automatically enroll employees into retirement plans by default (utilizing status quo bias ), while allowing them to opt out. This simple flip in the default settings has dramatically increased global retirement savings rates.

: An introduction to how human behavior often deviates from standard economic models. Mental Accounting

David R. Just’s Introduction to Behavioral Economics serves as an essential map for anyone trying to navigate the complexities of human choice. By systematically evaluating where human psychology intersects with market mechanics, the text provides a more accurate, compassionate, and actionable view of economic behavior.

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But real humans are messy, impulsive, and predictably irrational.

David R. Just’s foundational textbook, , bridges the gap between economic theory and human psychology. It provides a structured framework for understanding why people make sub-optimal financial, health, and social decisions.