When people make judgments and choices, especially when faced with uncertainty, they behave in a manner that seems complex and irrational. Cognitive psychologists have identified and organized these patterns of behavior into a descriptively accurate model of human judgments and choices called behavioral decision theory. Incorporating this theory's insights in public policy analysis will enhance our ability to design better policies and enable us to understand the limits of effective regulation.
When people make judgments and choices, especially when faced with uncertainty, they behave in a manner that seems complex and irrational. Cognitive psychologists have identified and organized these patterns of behavior into a descriptively accurate model of human judgments and choices called behavioral decision theory. Incorporating this theory's insights in public policy analysis will enhance our ability to design better policies and enable us to understand the limits of effective regulation.
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