Nudging ourselves? The limits of incentivizing "good behavior"

Behavioral economics recognizes that economic agents operate with bounded rationality. Indeed, the field examines how the economic decisions of individuals, firms, and institutions are influenced by social, emotional, and cognitive factors, as well as their environment. The agenda builds on insights from researchers across diverse disciplines (psychologists, behavioral researchers, marketing scientists, and financial economists) who have documented widespread examples of behaviors and problem-solving techniques that do not conform to the assumptions of standard economic theory.