Sublime

investment goods, people tend to err on the side of doing too little.

“tragedy of the commons.”

Understanding mental accounts would also improve public policy. Governments can benefit from understanding the concept of mental accounting.

If people know their preferences, and know that they dislike the outcome that is embedded in the default, they will probably change it.

Cleverly, each receipt includes a scratch-off lottery ticket, giving customers an incentive to ask for a receipt, which then makes the transaction reportable to the government.

Humans, more than Econs, also need protection from others who deliberately exploit their weaknesses—and especially the quirks of System 1 and the laziness of System 2. Rational agents are assumed to make important decisions carefully, and to use all the information that is provided to them. An Econ will read and understand the fine print of a contr

When we have no idea what something should cost, we believe we’re making the best decision if we neither overspend on the deluxe model nor go too cheap on the basic one.

people’s identity, or their self-understanding, can greatly matter.

For reasons we have discussed, many people will take whatever option requires the least effort, or the path of least resistance.