Lessons tagged “behavioral-economics”
10 published lessons with this tag.
Financial agents
Agents for spending saving and investment decisions.
Pre-commitment as a decision framework
Deciding in advance what you will do in a specific situation removes in-the-moment temptation.
The default option framework
Define good defaults so that the do-nothing option is acceptable.
Pre-commitment eliminates in-the-moment choices
Pre-commitment is the strategy of making decisions in advance so that in-the-moment temptation, fatigue, or distraction cannot override your intentions.
The sunk cost trap in commitments
Past investment does not justify continuing a commitment that no longer serves you.
Commitment exit criteria
Define in advance what conditions would justify releasing a commitment.
Libertarian paternalism for yourself
Design choice environments that nudge your future self toward good decisions without removing freedom.
Sovereignty and finances
Financial sovereignty means spending and saving in alignment with your values not social pressure.
Automation of financial behaviors
Saving investing and spending decisions handled by automated rules.
Testing your hierarchy through real decisions
Actual choices reveal your real value hierarchy better than abstract reflection.