Cognitive distortions — systematic errors in thinking — are both symptoms and drivers of behavioral economics. Identifying and correcting them is core to CBT.
Common Cognitive Distortions in Behavioral Economics
All-or-nothing thinking: 'I failed once, therefore I always fail' — common in behavioral economics
Catastrophizing: Expecting the worst-case outcome for behavioral economics-related situations
Mind reading: Assuming others are judging you negatively
Fortune telling: Predicting negative behavioral economics-related outcomes as facts
Emotional reasoning: 'I feel like I'm failing, therefore I am' — behavioral economics emotions mistaken for evidence
Should statements: Rigid rules about how you or others must behave that create behavioral economics when violated
Correcting Cognitive Distortions in Behavioral Economics
The CBT process: identify the distorted thought → examine the evidence → generate a more balanced alternative → notice the effect on behavioral economics.
With practice, cognitive restructuring becomes automatic and behavioral economics loses much of its staying power.