Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by traditional economics , a person is expected to weigh the benefits and drawbacks of an action and then choose the option in their own self-interest. Behavioral economic theories are used to explain most everyday decisions, such as what people buy, how they manage their finances, and whether or not they make
When Behavioral Economics Becomes Part of Your Identity
Living with behavioral economics over time can lead to a fusion of identity and diagnosis. You may find yourself thinking "I am behavioral economics" rather than "I have behavioral economics." This identity fusion has significant consequences:
- Reduces motivation (why try if this is just who I am?)
- Increases shame and stigma internalization
- Makes recovery feel like losing part of yourself
- Limits how others see you (and how you see yourself)
Reclaiming a Multidimensional Identity
Your identity is vastly larger than behavioral economics. A powerful exercise: complete this sentence 20 times with anything other than your struggles:
"I am someone who ___________"
Values, roles, relationships, interests, history, capabilities — all form your identity.
Behavioral Economics as One Chapter, Not the Whole Story
Narrative therapy offers a powerful reframe: behavioral economics is one story in a much larger life narrative. You are the author, not the character defined by struggle.
Externalizing the problem: Practice talking about "Behavioral Economics that visits me" rather than "my Behavioral Economics." This linguistic shift creates psychological distance and agency.
Building Identity Beyond Behavioral Economics
- Invest in relationships that see your full self, not just your struggles
- Pursue interests unrelated to mental health — art, sport, learning, creativity
- Find meaning — purpose larger than symptom management provides identity anchor
- Contribute to others — giving to others builds positive identity components
- Celebrate growth — document how you've changed, overcome, adapted
The Strengths That Behavioral Economics Builds
Many people find that navigating behavioral economics develops genuine strengths: deep empathy, resilience, self-awareness, creativity, and a hard-won wisdom about what matters in life.