Behavioral Economics: Understanding the Psychological Factors Driving Economic Decisions

Authors

  • Dr. Irfan Nooruddin University of Sargodha

Keywords:

Behavioral economics, decision-making, cognitive biases, heuristics, bounded rationality, nudges, public policy, economic models, rational choice theory

Abstract

While traditional economics assumes that individuals make rational choices based on perfect knowledge and self-interest, behavioral economics challenges this assumption by incorporating insights from psychology. This article explores the field of behavioral economics, examining the psychological factors that influence economic decision-making and their implications for individual behavior, market outcomes, and public policy.

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Published

2023-06-30

Issue

Section

Articles