Behavioral Economics: Loss Aversion, the Decoy Effect, and the Power of Free

Forty questions on the most famous findings in behavioral economics — why losses hurt about twice as much as equivalent gains, how a useless third option (the decoy) can flip your choice, and why the word free makes us behave irrationally. Each question pairs a tempting wrong answer with an explanation that teaches the underlying mechanism, followed by a reference to the original research or a primary source for verification and further reading. Covers prospect theory, the endowment effect, framing, anchoring, mental accounting, nudges, the ultimatum game, and the Nobel-winning work of Kahneman, Tversky, Simon, and Thaler.