Behavioral Economics

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3 domain-specific abstractions whose origin domain is Behavioral Economics.

• Expenditure cascades — A consumption spillover in which higher spending by top-income households raises local comparison standards and induces successive spending increases down the income distribution.
• Homo reciprocans — An economic actor model in which people reward cooperation and punish unfairness even when doing so yields no foreseeable material gain.
• Uncertainty effect — A choice anomaly in which a known lottery is valued below its least valuable possible outcome.