physiology of, 91
rational, 41
adverse selection, 166
Agell, Jonas, 168
Allais, Maurice, 116
analysis: normative, 14, 31, 81, 117, 145, 295
Asch, Solomon, 100
“as-if” interpretation, 24
attribution theory, 245
availability heuristic, 203
behavior: dynamically inconsistent, 30
prosocial, 296
behavioral anomalies, 12
Benartzi, Schlomo, 96
Bernheim, Douglas, 7, 10, 23, 43, 67, 81, 152
Bertrand, Marianne, 246
Bewley, Truman, 158, 188, 239, 298
bias: “law of small numbers”, 204
implicit, 122
optimism, 123
Blader, Steven, 181
Blinder, Alan, 167
Bolton, Gary, 13
bounded rationality, 121, 145, 223, 281
Brumberg, Richard, 20
Camerer, Colin, 3, 13, 64, 240, 256, 283
Campbell, Carl, 167
Case, Anne, 113
Choi, Don, 167
choice: dynamically inconsistent, 27
inefficient, 26
Christakis, Nicholas, 233
citizenship: organizational, 177
Coase Theorem, 117
cognitive: ability, 110
economics, 256
economy, 281
heuristics, 109
mechanism, 48
therapy, 44
coherent preference, 11
commitment, 90–91, 133, 260, 265
problem, 114
consumer protection law, 134
consumption, 23
context, 120
contract: law, 120
renegotiation, 133
coordination failure, 253
corporate finance, 258
corporate law, 131
corruption, 106
counter-cue, 52
cue-conditioning, 49
cue-triggered mistakes, 32, 49
cue-triggered present-bias, 53
cue-triggered recidivism, 43
culture, 252
default, 82, 90, 95, 118, 133, 231
plan, 217
diffusion of innovations, 97
discrimination, 121
doctor–patient relationship, see physician–patient interaction
downward rigidity, 159
Dranove, David, 210
drugs, 199
Duflo, Esther, 38
dynamically inconsistent
choice, 27
valuation, 89
economics: cognitive, 256
health, 195
law and, 115
Public, 7
education, 86
Ellsberg, Daniel, 116
Elster, Jon, 80
empire building, 266
Engel, Christoph, 148
equilibria, multiple, 190
market, 206
error: of judgment, 121
Evans, Robert, 198
expected utility theory, 124
experiment, 27, 61, 82, 98, 100, 105, 107, 117
failure, 212
formulation, 25
of reciprocity, 108
to plan, 38
Fedorikhin, Alexander, 28
Fehr, Ernst, 13, 63, 159, 170, 240, 298
finance: corporate, 258
financial institutions, 95
fines, 174
firing, 176
Fischbacher, Urs, 63
Fisher, Irving, 20
formulation failure, 25
Frank, Richard, 195, 213, 223, 234
Frederick, Shane, 27
frontal cortex, 48
Fudenberg, Drew, 37
Gage, Phineas, 285
Gibbons, Robert, 252
Güth, Werner, 107
Hall, Brian, 249
Hammermesh, Daniel, 23
harnessing bias, 147
health care, 196
health economics, 195
Holden, Sarah, 27
Honkapohja, Seppo, 188
hyperbolic: discounting, 87, 214, 299
Ichino, Andrea, 250
implicit bias, 122
mechanism, 165
negative, 175
price, 82
inefficient choice, 26
inflation, 190
information asymmetry, 200
innovations, diffusion of, 97
insider–outsider theory, 168
insurance, 213
Jolls, Christine, 116, 128, 138
Jones, Stephen, 13
judgment error, 121
justice: procedural, 181
Kahneman, Daniel, 2, 105, 114, 117, 135, 149, 203, 240, 292
Kamlani, Kunal, 167
Kaplan, Steven, 266
Keynes, John Maynard, 164, 167, 189
Korobkin, Russell, 120
Kuhn, Thomas, 150
law: and psychology, 150
“law of small numbers” bias, 204
law and economics, 115
layoff, 163
Ledyard, John, 64
Levine, David, 37
List, John, 67
litigation, 130
Loewenstein, George, 13, 27, 37, 39, 57
loyalty, 176
Lundborg, Per, 168
macroeconomics, 188
Malmendier, Ulrike, 243, 261, 283
failure, 22, 196, 224, 226, 229
McCall, Timothy, 227
McGuire, Thomas, 198, 213, 223
measuring welfare, 10
medical care, see health care
mental state, 14
Milgrom, Paul, 251
mistake, 16, 24, 29, 33, 44, 67, 236, 245, 270
self-described, 44
self-reported, 24
Modigliani, Franco, 20
morale, 160
Mullainathan, Sendhil, 85, 91, 110, 114, 196, 246
multiple equilibria, 190
negative incentive, 175
neoclassical: paradigm, 10
perspective, 21
Nisbett, Richard, 109
normative analysis, 14, 31, 81, 117, 145, 295
Ockenfels, Axel, 13
optimism bias, 123
organizational citizenship, 177
organizational knowledge, 256
overconfidence, 246
peer pressure, 250
Pesendorfer, Wolfgang, 12, 15, 37, 55
decision-making, 199
induced demand, 198
physician–patient interaction, 199, 210, 223, 233
Pollack, Jordan, 14
poor, 109
Posner, Eric, 115
Posner, Richard, 133
poverty, 86
trap, 104
coherent, 11
hyperbolic, 147
revealed, 7, 11–12, 15, 19, 119
social, 13
prefrontal cortex, 287
Prelec, Drazen, 39
present-bias; cue triggered, 53
price incentive, 82
pride, 179
principal–agent relations, 237
procedural justice, 181
productivity, 161
projection: bias, 57
projection bias, 57
property rights, 105
prosocial behavior, 296
psychic income, 242
psychology, 27
law and, 150
public: economics, 7
quasi-hyperbolic discounting, 9, 16, 29, 32, 53
Rabin, Matthew, 2, 9, 13, 199, 204
Rachlinski, Jeffrey, 132
Rangel, Antonio, 7, 10, 43, 81, 152
rates of failure, 266
rational: addiction, 41
expectations equilibrium (REE), 192
rationing, 196
recidivism: cue triggered, 43
reciprocity, 170
failure of, 108
REE, see rational expectations equilibrium
regret, 210
renegotiation, 133
rent-seeking, 131
retirement, 8, 21, 23–24, 31–32, 39, 83, 89, 95, 133
revealed preference, 7, 11–12, 15, 19, 119
rigidity: downward, 159
risk-incentive model, 237
Roemer, John, 12
Rosen, Sherwin, 271
Roy, Donald, 251
Save More Tomorrow, 96
Schelling, Thomas, 252
Schmidt, Klaus, 13
second-best policy, 22
self-control, 12, 18, 27–28, 44
self-described mistake, 44
self-image, 298
self-interest, 125
self-serving bias, 102, 123, 130
self-signaling, 299
selfish worker, 171
Sen, Amartya, 12
Shapiro, Carl, 164
Shavell, Steven, 115
shirking, 164
simplicity, 257
sin tax, 54
SMaRT, see Save More Tomorrow
Smith, Jennifer, 169
social: imitation, 100
sorting, 268
status judgment, 179
status quo bias, 97
stereotyping heuristic, 211
Stern, Nicholas, 78
Stiglitz, Joseph, 164
stimulus, 29
Sugden, Robert, 12
“sin tax”, 54
Thaler, Richard, 1, 27, 36, 39, 85, 96, 107, 117, 196, 199, 208, 215, 218
tipping, 300
Tirole, Jean, 243, 291, 295, 302
transaction costs, 117
true preference, 53
Tversky, Amos, 2, 114, 149, 203, 292
Tyler, Tom, 181
uncertainty, 200
unemployment, 168
wage, 157
warm-glow model, 62
Weiss, Andrew, 166
willingness to pay (WTP), 118
Wilson, Timothy, 299
worker: selfish, 171
WTP, see willingness to pay