The field is defined by several recurring psychological patterns: An Introduction to Behavioral Economics
: Acknowledges bounded rationality —our thinking is limited by time, information, and brain power. It explores the gap between what people "should" do and what they actually do. 2. Core Concepts & Principles An introduction to behavioral economics
Behavioral economics is the study of why people often make "irrational" decisions that defy traditional economic models. While classical economics assumes humans are perfectly rational "Econs" who maximize utility, behavioral economics integrates psychology to show we are "Humans" influenced by emotions, environment, and cognitive shortcuts. 1. Traditional vs. Behavioral Economics The field is defined by several recurring psychological
: Assumes people have stable preferences, perfect information, and always choose the best possible outcome for themselves. An introduction to behavioral economics