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

To dig deeper, the researchers built a mathematical model using tools from game theory and behavioral economics.

From Science Daily

"We used a mathematical model and tools from game theory and behavioral economics to understand the motivations behind tipping," says Dr. Snitkovsky.

From Science Daily

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