Behavioral economics is a practical economics, which combines behavioral analysis theory with the laws of economic operation, psychology and economic science in order to find the errors or omissions in the current economic model, and then to correct the deficiencies of the basic assumptions of mainstream economics about human rationality, self-interest, complete information, utility maximization and preference consistency.

1, the certainty effect:

The so-called certainty effect (certainty effect), that is, in the certainty of the benefits (gains) and "betting on a hand", to make a choice, the majority of people will choose the certainty of the benefits. With a word to describe is "see the good to close", with a phrase to play the analogy is "two birds in the forest, not as good as a bird in the hand", as the so-called bag for peace.

2, the reflex effect:

When a person in the face of two kinds of loss of choice, will stimulate his spirit of adventure. In the certainty of the bad (loss) and "betting", to make a choice, most people will choose "betting", which is called "reflex effect". This is called the "reflex effect". It is summarized in the phrase "choosing the lesser of two evils".

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