Problem-Solving Therapy (PST) addresses an underappreciated driver of behavioral economics: actual, real-world problems that therapy doesn't directly resolve.
The Problem-Solving Model of Behavioral Economics
PST proposes that behavioral economics often reflects deficits in problem-solving ability — making real stressors feel unsolvable, which drives hopelessness and behavioral economics.
The Problem-Solving Process for Behavioral Economics
- Problem orientation: Recognize problems as solvable, not catastrophic
- Problem definition: Clearly define what you're actually dealing with
- Generate alternatives: Brainstorm multiple possible responses
- Decision-making: Evaluate options against values and feasibility
- Implementation: Carry out the solution
- Evaluation: Assess results and adjust
When PST Is Especially Helpful for Behavioral Economics
PST is particularly effective when behavioral economics is driven by or worsened by concrete life stressors — financial problems, relationship conflicts, work challenges. Addressing these directly often produces significant behavioral economics relief.