This article outlines the editing heuristics outlined by Kahneman and Tversky in their description of prospect theory.
This article explains what the endowment effect is and why it arises in individual decision making.
This article explains what status-quo bias is and why it arises in individuals' decision-making processes.
This article gives a brief introduction to prospect theory and shows the motivating principle that led to its development.
This article explains what the overchoice problem is and summarizes some of the evidence that researchers have for the phenomenon.
This article outlines the specific properties that economists refer to when they describe behavior as economically rational.
This article explains the logic behind the government spending multiplier and derives how the multiplier is calculated.
This article explains what marginal propensity to consume is and shows how it is calculated.
This article introduces the concept of the money multiplier and gives a formula for it.
This article explains how the commonly-used fractional reserve banking system works.