Behavioral Economics Lab
Behavioral Economics — Bias & Decision Making
Behavioral economics blends psychology with economic theory to explain why people deviate from purely rational choices. This simulator presents classic experiments — the ultimatum game, framing tasks, and intertemporal choice problems — so you can observe biases like loss aversion and hyperbolic discounting in your own decisions. Understanding these patterns helps explain market anomalies and policy design.
What you can do in this simulation
- Play the ultimatum game and explore how fairness norms override rational acceptance
- Experience anchoring by estimating quantities before and after seeing reference numbers
- Compare choices under gain-framing versus loss-framing to reveal prospect theory effects
- Test hyperbolic discounting with intertemporal choice tasks involving near vs. far rewards
- Track your response pattern and compare it to the rational-actor benchmark
Concepts covered
loss aversion · anchoring · prospect theory · hyperbolic discounting · framing effect · bounded rationality
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