Behavioral Economics

Created: 2022-12-27
Status: #soil
Last Edited: 2022-12-27
Topic: economics

What is Behavioral Economics?

Behavioral economics is an interdisciplinary field that combines psychology and economics to explain decision-making behavior in individuals, groups, and organizations.

Behavioral economics draws on theories such as prospect theory, social preferences, and cognitive biases to provide a more nuanced understanding of economic decisions than traditional economic models. Behavioral economists have applied their insights to explain phenomena such as consumer choice, asset pricing, corporate governance, and public policy.