Behavioral Economics (ECON 370) Biases, Heuristics, and Policy Exam Review
University of Wisconsin-Madison
Behavioral Economics (ECON 370) | Exam Review

Overview
A review packet on bounded rationality, framing, present bias, nudges, and the gap between descriptive and classical models.

Key topics
•anchoring and framing
•loss aversion
•present bias
•nudge ethics

Suggested study tasks
•match biases to real-world examples
•compare a classical prediction with a behavioral prediction
•classify one nudge by its mechanism

Common pitfalls
•calling every irrational choice the same bias
•forgetting the classical benchmark model