Models in behavioral economics are typically addressed to a particular observed market anomaly and modify standard neo-classical models by describing decision makers as using heuristics and being affected by framing effects. In general, behavioural economics sits within the neoclassical framework, though the standard assumption of rational behaviour is often challenged.

Heuristics:

Prospect theory - Loss aversion - Status quo bias - Gambler's fallacy - Self-serving bias

Framing:

Cognitive framing - Mental accounting - Reference utility - Anchoring

Anomalies:

Endowment effect - Equity premium puzzle - Money illusion - Fairness - Efficiency wage hypothesis - Reciprocity - Intertemporal consumption - Present biased preferences - Behavioral life cycle hypothesis - Wage stickiness - Price stickiness - Visceral influences - Income and happiness

Criticisms of behavioral economics:

Critics of behavioral economics typically stress the rationality of economic agents (see Myagkov and Plott (1997) amongst others). They contend that experimentally observed behavior is inapplicable to market situations, as learning opportunities and competition will ensure at least a close approximation of rational behavior. Others note that cognitive theories, such as prospect theory, are models of decision making, not generalized economic behavior, and are only applicable to the sort of once-off decision problems presented to experiment participants or survey respondents.

Traditional economists are also sceptical of the experimental and survey based techniques which are used extensively in behavioral economics. Economists typically stress revealed preferences, over stated preferences (from surveys) in the determination of economic value. Experiments and surveys must be designed carefully to avoid systemic biases, strategic behavior and lack of incentive compatibility and many economists are distrustful of results obtained in this manner due to the difficulty of eliminating these problems. Rabin (1998) dismisses these criticisms, claiming that results are typically reproduced in various situations and countries and can lead to good theoretical insight.