Behavioral economics combines elements of economics and psychology to understand how and why people behave the way they do in the real world. It differs from neoclassical economics, which assumes that ...

Behavioral economics helps investors understand irrational market behaviors and customer choices. Examples of behavioral economic theories include loss aversion and sunk-cost fallacy. Recognizing ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The year 2017 may turn out to be when behavioral economics entered the mainstream after a leading practitioner in the field won a Nobel prize for his work. Behavioral economics is the study of how ...

Behavioral economics sheds light on most every day activities and why we consume goods and services the way we do, why we make certain choices about ourselves or others, and how we decide courses of ...

Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by ...

Behavioral economics, it seems, might just have a bias problem of its own. Once dismissed as little more than psychobabble, the discipline, which marries classical economics with psychology, has won ...

Sure, the book Nudge may have become a cultural phenomenon that ended up selling millions of copies. And, OK, it resulted in hundreds of governments and countless companies around the world adopting ...

People donate to charity for many reasons. Hardly an objectionable claim. Generosity. Self-satisfaction. Guilt. Reciprocity. Duty. Prestige. People also do not donate to charity for many reasons. Also ...

If you’re reading this article, you’re likely familiar with, or at least intrigued by, the concept of behavioral economics (also known as BE). The study of how humans really make decisions has ...