Scott Alexander argues that despite some replication failures, the core of behavioral economics remains valid and valuable, with the field continuing to evolve and refine its understanding of human decision-making.
Longer summary
Scott Alexander responds to Jason Hreha's article claiming the 'death of behavioral economics'. He argues that while some studies have failed to replicate, the core insights of behavioral economics remain valid. Scott examines the historical origins of loss aversion, discusses recent debates about its existence, and argues that even small effect sizes can be valuable at scale. He concludes that behavioral economics as a field is generally healthy, continuing to investigate and refine our understanding of human decision-making, though specific paradigms may evolve over time.
Shorter summary