Behavioral Economics: Past, Present, Future

Behavioral economics increases the explanatory power of economics by providing it with
\nmore realistic psychological foundations. This book consists of representative recent articles in
\nbehavioral economics. This chapter is intended to provide an introduction to the approach and
\nmethods of behavioral economics, and to some of its major findings, applications, and promising
\nnew directions. It also seeks to fill some unavoidable gaps in the chapters’ coverage of topics.