Editing Behavioral Economics (section)

== Analyzing (Break Down / Analysis) 🔬 ==
=== Comparative analysis ===
* Versus neoclassical economics: offers higher predictive accuracy for real-world behavior.
* Versus behavioral finance: broader scope; not limited to markets.
* Works best in contexts with clear frictions or bounded rationality; less impactful for highly informed expert decisions.

=== Structural insights ===
* Built on dual-process cognitive architecture (fast/automatic vs. slow/deliberative thinking).
* Relies on systematic cataloging of biases (anchoring, availability, overconfidence).
* Interventions operate by modifying environmental cues rather than preferences.

=== Failure modes & root causes ===
* Overgeneralization of lab results to real-world settings.
* Poorly designed nudges that ignore cultural context.
* Backfire effects when individuals detect manipulation.

=== Troubleshooting & observability ===
* Use RCTs to detect causal impact.
* Track conversion rates, default acceptance rates, time-to-complete metrics.
* Monitor unintended behavior shifts (e.g., reactance).

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