- Understanding Human Behavior: Behavioral Economists analyze the psychological, cognitive, and social factors that influence decision-making, challenging traditional economic theories.
- Integration of Insights: They draw from psychology, neuroscience, and microeconomic theory to understand how individuals make economic decisions and form public opinions.
- Challenging Traditional Assumptions: By exploring cognitive biases and social influences, behavioral economists question the assumption of perfect rationality in classical economics.
- Informing Policy and Strategy: Their research informs policies and business strategies, guiding interventions that lead to better outcomes for individuals and society.
Behavioral Economics: Meaning, Principles, Application and Criticism