Behavioral economics incorporates concepts such as bounded rationality, limited information, and social preferences to explain deviations from traditional economic models.

The endowment effect refers to the tendency for individuals to place a higher value on items they own compared to identical items they do not own.

Framing effects occur when the way information is presented influences individuals' choices, even if the underlying facts remain the same.

Laboratory experiments are controlled experiments conducted in a laboratory setting, allowing researchers to isolate and study specific factors that influence economic decision-making.

Experimental games are a common method used in experimental economics to study individual decision-making in strategic settings.

Affect heuristic refers to the tendency to make decisions based on emotions and feelings rather than rational analysis.

Social preferences refer to individuals' preferences for outcomes that benefit others, even at a cost to themselves.

Field experiments are controlled experiments conducted in a real-world setting, allowing researchers to study economic behavior in a more naturalistic environment.

Public goods experiments are a common method used in experimental economics to study group decision-making and cooperation.

Status quo bias refers to the tendency to prefer the current state of affairs, even if there are potential benefits to changing it.

Bounded rationality refers to the idea that individuals make decisions based on limited information and cognitive constraints, rather than having perfect information and unlimited computational power.

Online experiments are controlled experiments conducted using online platforms, allowing researchers to reach a wider and more diverse population.

Game theory is a common method used in experimental economics to study strategic decision-making in situations where individuals interact with each other.

Herding behavior refers to the tendency to make decisions based on the opinions of others, even if those opinions are not necessarily correct.

Natural experiments are studies that use naturally occurring events to study economic behavior, without the need for direct intervention by researchers.