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introduction to behavioral economics pdf
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Introduction to behavioral economics is a field of study that combines insights from psychology and economics to understand and predict human behavior in economic decision-making. Unlike traditional economics, which assumes that individuals are rational and always act in their best interest, behavioral economics acknowledges that people often make decisions that are influenced by their emotions, biases, and social norms. By examining how individuals deviate from rationality, behavioral economics seeks to better understand why people make certain choices and how these decisions impact markets, policy, and society as a whole. This interdisciplinary approach has led to a deeper understanding of topics such as consumer behavior, savings and investment decisions, and the design of public policies. Overall, the field of behavioral economics provides valuable insights into human behavior that can help improve economic models and inform decision-making in various contexts.