Behavioral Economics

What Does Behavioral Economics Mean?
A field of economics that studies how the actual decision-making process influences the decisions that are reached.

Investopedia explains Behavioral Economics
The two most important questions in this field are:
1. Are the assumptions of utility or profit maximization good approximations of real behavior?
2. Do individuals maximize subjective expected utility?

Related Terms

Behavioral Accounting
Behavioral Finance
Consumer Surplus
Dutch Book Theorem
Economics
Gambler's Fallacy
Market Psychology
Media Effect
Reflexivity
More Related Terms

Related Links

Taking A Chance On Behavioral Finance - Curious about how emotions and biases affect the market? Find some useful insight here.
The Knowledge-Experience Continuum: Where Do You Fall? - Theory and practice are worlds apart, but problems arise when people treat them as one and the same.
Economics Basics - Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!

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