odds with economists’ utility maximizing models. The typical response is for economists to brush these behaviors

aside and call them “anomalies” or unexplained quirks.

“If only you knew more economics, you would not be so irrational,” is what many mainstream economists seem to
be saying. A group known as behavioral economists has challenged this notion, because so much of this so-called

“quirky” behavior is extremely common among us. For example, a conventional economist would say that if you lost

a $10 bill today, and also received an extra $10 in your paycheck, you should feel perfectly neutral. After all, –$10 +

$10 = $0. You are the same financially as you were before. However, behavioral economists have conducted

research that shows many people will feel some negative emotion—anger or frustration—after those two things

happen. We tend to focus more on the loss than the gain. Economists Daniel Kahneman and Amos Tversky in a
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