behavioral economics

American  

[bih-heyv-yer-uhl ek-uh-nom-iks, eekuh-] / bɪˈheɪv yər əl ˌɛk əˈnɒm ɪks, ˌikə- /

noun

(used with a singular verb)

1. the branch of economics dealing with the effects of psychological, emotional, cultural, and social factors on individual or group economic decision-making, as distinguished from classical economics, which assumes that people will make the optimal economic decisions based on rational self-interest and utility.

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Etymology

Origin of behavioral economics

First recorded in 1955–60

Example Sentences

In one of my favorite papers in behavioral economics, Stefano DellaVigna and Ulrike Malmendier looked at gym memberships and found that many people chose expensive monthly contracts rather than paying per visit, then exercised so little that the pay-as-you-go option would have been much cheaper.

From The Wall Street Journal

In behavioral economics, friction is destiny.

From The Wall Street Journal

The optimal New Year’s resolution works with human nature rather than trying to defy it, respecting the limits of motivation and leveraging the power of behavioral economics.

From The Wall Street Journal

Behavioral economics, like “lived experience,” existed long before anyone thought a special and seemingly redundant name was required.

From The Wall Street Journal

The ascent of behavioral economics was complete, or at least so it seemed.

From The Wall Street Journal