Behavioral Economics: Theory and Experiment

Abstract

Behavioral economics is a field of economics that studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions. It draws on insights from psychology, neuroscience, and other disciplines to understand how people actually make decisions, often in ways that deviate from the predictions of traditional economic theory. Behavioral economics has had a significant impact on a wide range of fields, including finance, marketing, public policy, and healthcare. For example, behavioral economists have shown how framing effects, biases, and heuristics can lead people to make irrational decisions about their savings, investments, and health. They have also developed interventions to help people overcome these biases and make better choices. This book provides a comprehensive overview of the theory and experiment of behavioral economics.