Behavioral Economics

Behavioral economics asks questions about the economic decisions that people make. Do individuals always act in their own best interest when it comes to maximizing utility, efficiency, and value?

Explore Behavioral Economics

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Rational Choice Theory: What It Is in Economics, With Examples
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Moral Hazard vs. Morale Hazard: What's the Difference?
Detail of a Golden Bull Breaking Through the Finance Section of a Newspaper
Don't Let Your Animal Spirits Influence Your Important Decisions
Business people hold paper jigsaw puzzle and solving puzzle together
Tit for Tat
Revealed Preference Definition
Cropped Hand Holding Gavel Against People During Auction
All You Need to Know About the Winner's Curse
Midsection of Businessman Using Calculator and Laptop at Desk
Rational Behavior Definition
Financial pundit Jim Cramer
Understanding Information Cascades in Financial Markets
World economy signs showing "socialism," "capitalism" and others
Socialism: History, Theory, & Analysis
A hand holds a poster sign that reads "SAVE THE MIDDLE CLASS" in black marker on yellow paper in the middle of a crowd.
What Is Middle Class Income? The Latest Numbers Available
Businessman in a suit standing outside a building look outward with a tablet in his hand
What Does Laissez-Faire Mean?
Millenial Group of Friends Going out Having Fun Together
How the Financial Crisis Affected Millennials
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Prospect Theory: What It Is and How It Works, With Examples
What Are the Four Types of Economic Utility?
What Is Bioeconomics?
Two people skydiving at sunset
What Are Examples of Moral Hazard in the Business World?
A man with money flying out of his wallet
Consumer Spending Definition
Cognitive vs. Emotional Investing Bias: What’s the Difference?
Save to Board Businesswoman Filling Survey Form On Mobile Phone
Michigan Consumer Sentiment Index (MCSI)
What Does “Investment Multiplier” Mean?
Black Monday: History, Causes, and Aftermath
Sierra Leonians survive in one of the world’s poorest countries
What Is the Human Development Index (HDI)?
How Game Theory Strategy Improves Decision Making
Midsection Of Woman Holding Shopping Bags
Understanding the Consumer Confidence Index
Top 4 mistakes that cause futures traders to fail
The Wealth Effect Definition
Person drawing
What Is the Bandwagon Effect?
Business Cooperation
What Is Self-Interest?
How Did Moral Hazard Contribute to the 2008 Financial Crisis?
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The Top 3 Financial Centers in the World
Paper Cash
Anchoring and Adjustment Definition
Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Which factors drive the marginal propensity to consume?
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Backward Induction
Game Bank
Gambler's Fallacy Definition
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Wisdom of Crowds Definition
Economic growth
New Growth Theory Definition
Marginal Propensity to Consume vs. to Save: Knowing the Difference
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Peer-to-Peer (P2P) Service Definition
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What the Market Open Tells You
Entrepreneur Writing on a Document While Sitting in a Restaurant
Income Effect vs. Price Effect: What’s the Difference?
Business Cooperation
How to Master the Art of Negotiation
Man Using Credit Card Reader
Adopter Categories Definition
Young woman checking her airplane in timetable board.
5 Worthwhile, Inexpensive Christmas Destinations
Intertemporal choice
Intertemporal Choice Definition
Reflexivity Definition
Consumer feedback
Consumer Sentiment Definition
Shakeout Definition
Two business people calculate their business in the office.
Mental Accounting Definition
The Importance Of Millennial Consumers
Stock Exchange
Endowment Effect Definition
What Does "Stump the Chump" Mean?
Relativity Trap Definition
Homo Economicus
If a particular good's price elasticity is high, does this mean the supplier should increase the supply, decrease it, or keep it constant?
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Money Illusion Definition
Financial and Technical Data Analysis Graph Showing Search Findings
Base Rate Fallacy
What Is the Einhorn Effect?
Gain and loss
Loss Aversion Definition
Stock Exchange Graph and Numbers
What Is the Fear and Greed Index?
Consumer Confidence: A Killer Statistic