behavioral economics

[ bih-heyv-yer-uhl ek-uh-nom-iks, eekuh- ]

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.

Word History and Origins

Origin of behavioral economics¹

First recorded in 1955–60

Example Sentences

The consequence is that psychologists applying their field to policy issues are now seen as doing behavioral economics.

From The Daily Beast

Nobel-winning psychologist Daniel Kahneman explains his problem with people using the term ‘behavioral economics.’

From The Daily Beast

When it comes to policy making, applications of social or cognitive psychology are now routinely labeled behavioral economics.

From The Daily Beast

A collection of some of his most interesting and inventive essays, the real foundation of behavioral economics.

From The Daily Beast

Cassidy turns to the burgeoning field of behavioral economics to explain how we arrived at the global economic crisis.

From The Daily Beast