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Essay text:
Yet, psychology
is not only concerned with the problem of explaining behavior, but it is also in the
business of modifying behavior. On of the shelves of the psychology section of any bookstore
one will find numerous works devoted to helping individuals modify their behavior so that
they drink and smoke less, and learn to have more rewarding social interactions at work and
in private life.
Economists suppose that individuals maximize rewards not because they believe that
people do so in every case, but because the maximizing supposition provides a useful unified
model of behavior in designing better economic institutions...
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