Unveiling the Intersection of Psychology and Economics

Exploring the history of behavioral economics and its fusion of psychology and economic theories, this chapter highlights the innovative methods used to understand human behavior. It discusses the challenges individuals face in differentiating between cleaning one lake and cleaning all lakes in a province due to cognitive processes and prototypes. Additionally, the chapter reflects on the hype and practical limitations of using behavioral economics for behavior change, contrasting the high expectations with the modest success rates observed.