Of most interest to behavioral economics are systematic errors, like non-regressive predictions. For example, one does not take into account that less extreme values are more likely after extremes (a tall father is likely to have a tall son, but a shorter father, etc.).
A wide variety of models are explored in behavioral economics:
models that account for the utility of anticipation;
models that take into account changing tastes;
point-of-view models, etc.
Also, behavioral economics interacts with many psychological phenomena excluded by classical economics. It interprets any economic phenomena of any scale from the perspective of psychology, behavioral mechanisms, rationality and irrationality.
Behavioral anomalies are one of the main specializations of behavioral economics. Examples of such anomalies are:
possession effect;
preference effect;
reciprocity;
aversion to injustice;
impulse investing;
intertemporal consumption;
herd behavior;
current consumption preference;
the sunk cost trap, etc.
There are also anomalies in market prices and incomes:
calendar effects (this could include the January effect, the day-of-week effect, the holiday effect, the month-of-the-year effect, etc.)
limit on arbitrage transactions;
the conundrum of stock returns;
tendency to extremes;
price brutality;
The effective pay level hypothesis;
the dividend trap, etc.
On a broader scale, pervasive ecent economics studies not only the events occurring in the marketplace, but also the relationship of these events to collective choice. It, too, is often conditioned by the selfish motivations of individuals.
In addition, behavioral economics also examines how the economy is affected by the perception of media information and rumors, the opinions of politicians and experts. There is, for example, the assumption that people in companies are being made redundant faster if word of mouth among workers is spreading. The same applies to the economic crisis. Businessmen, entrepreneurs and top managers psychologically tune in to “crisis mode,” which soon begins to show in the decisions they make (personnel, financial and economic, etc.).
Behavioral economics relies on both individual and mass psychology. Many studies have shown that even a small group of attitudes can affect the market as a whole.
But for behavioral economics to deal fully with phenomena on a global scale, it is necessary to understand what such concepts as honesty really are: how people understand and use them, and how the individual parts of the economy are put together to form financial and economic situations and relations.