Behavioral economics : evidence, theory, and welfare / Brandon Lehr.

Includes bibliographical references and index.

The work systematically analyzes major concepts of behavioral economics, including present bias, loss aversion, reference dependence, bounded rationality, social preferences, mental accounting, and nonstandard beliefs. It explains how individuals make choices involving uncertainty, time, risk, cooperation, and consumption, frequently deviating from the predictions of fully rational models. Through theoretical discussions and empirical evidence, the author demonstrates how these behavioral patterns influence markets, institutions, public policy, and welfare outcomes. The book also explores the implications of behavioral economics for government policy and market regulation, discussing topics such as nudging, consumer protection, savings behavior, labor decisions, healthcare choices, and financial markets. By combining formal economic models with experimental and real-world evidence, the text highlights both the explanatory power and policy relevance of behavioral approaches.