Humans often act irrationally, making decisions—sometimes important ones—that contradict our best interests. This kind of irrational behavior is at the center of behavioral economics, and this free, ...

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 studies how psychological tendencies influence economic decisions and outcomes. Concepts such as loss aversion and bounded rationality explain why people evaluate outcomes ...

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In its early days, behavioral economics was focused on documenting human deviance from rational action. It began as a challenge to the mainstream neoclassical economics model, which assumes people are ...

It is a bit difficult to say what criteria should be used to judge the success or failure of a research initiative on the scale of merging psychology and economics. Two reasonable criteria, at least ...

What determines a worker's wages and why do black women in America earn about 2/3rds the wage of white men? Why do basic goods seem to cost much more since the onset of the COVID-19 pandemic and how ...