Classical economics assumes people are rational utility maximizers. Behavioral economics, pioneered by Kahneman and Tversky, reveals that we are systematically irrational in predictable ways. We feel losses twice as strongly as equivalent gains. We treat money differently based on its source. We are swayed by default options and framing effects.
These simulations explore the key findings of behavioral economics. Experience loss aversion viscerally by comparing gains and losses, see how nudges reshape behavior without restricting choice, discover the endowment effect that makes us overvalue what we own, and watch how social proof creates information cascades.