Behavioral Economics

Behavioral economics is an interdisciplinary field of research that examines the decision-making behavior of people and businesses. It combines aspects from psychology, economics, and decision science to better understand and explain our economic behavior when confronted with difficult decisions. Behavioral economics helps to identify the often unconscious and irrational biases that influence our decisions and how they affect our economic decisions. It is used to inform public policy and business strategy, as well as to assist in the design of marketing and consumer financial products. Behavioral economics is increasingly being recognized as an important tool to help improve the efficiency and effectiveness of the economy.