reconstruct paragraph to bring reader on a journey to understand the evolution from neoclassical economics to behavioural economics. Speak about neoclassical economics, the disposition effect, expected utility, moving from rationality to bias in regards in decision making.

In the world of economics, neoclassical economics has long been a dominant thought (Arthur, 2021). It assumes that individuals are homo economicus, rational beings driven by self-interest and capable of making decisons based on well-structured preferences (Yamagishi et al., 2014). However, human behaviour is complex in nature and has shown that decision-making is not completely rational but has elements of heuristics and biases. Evidence of the presence of bias in decision making is the disposition effect, a phenomenon in behavioural economics. It refers to the tendency to hold losing investments for too long and selling winning investments readily (Shefrin & Statman, 1985). This behaviour can be explained by loss aversion as individuals are more sensitive to loss (Kahmen... ) but not by traditional economics as it does not account for psychological impact of losses on decision making. This phenomenon highlights that physiological and cognitive shortcuts can impact finical decisons, often deviating from the predictions of expected utility theory (assuming rationality and maximised overall utility). This realisation gave birth to behavioural economics, combining both economics and psychology. Behavioural economics recognises that individuals are not perfectly rational but are influenced by loss aversion.