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behavioral economics
Sign in to saveAlso known as behavioural economics, Economics, Behavioral
discipline of economy studying the effects of psychological, cognitive, emotional, cultural and social factors on decisions
Behavioral economics is a field of study that examines how psychological, cognitive, emotional, cultural, and social factors influence the financial and economic decisions people make. It matters because understanding these human factors helps explain why people often don't make purely rational financial choices and can improve how we design policies and institutions that affect people's economic well-being.
AI-generated from the Wikipedia summary — may contain errors.
~40 min read
Encyclopedic overview
Behavioral economics is the study of the psychological (e.g. cognitive, behavioral, affective, social) factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by traditional economic theory.
Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory.
Excerpted from Wikipedia’s “behavioral economics” article, available under the CC BY-SA 4.0 licence.