Category: Behavioral Economics Framework

Choosing the right insurance plan can be a daunting task, filled with complex terms and a plethora of options. Behavioral economics, the study of how psychological, cognitive, and emotional factors affect economic decisions, can offer valuable insights to guide you...

Loss aversion, a key concept in behavioral economics, significantly impacts how consumers approach buying insurance. This psychological phenomenon describes the tendency for individuals to prefer avoiding losses rather than acquiring equivalent gains. When it comes to insurance, loss aversion plays...

  It is no exaggeration to say that some economists really seem to hate Christmas as they consider this a holiday that simply “destroys value.” George Loewenstein and Cass Sunstein – two researchers who pioneered behavioral economics and neuroeconomics, affirm...

Choosing the right insurance policy can be a daunting task. The complexity of insurance terms, the abundance of options, and the long-term implications of these decisions can easily overwhelm consumers. However, heuristics—simple, efficient rules or mental shortcuts—can play a crucial...

Insurance is a tool designed to protect us from the financial impact of unexpected events. However, not everything in our lives is insured. The decision of what to insure and what to leave uninsured often depends on several key factors....

  In a well-known study conducted in 1997, Colin Camerer and colleagues showed that New York City taxi drivers – and presumably all humans under the same conditions – tend to work more on sunny days, even though there are...