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

A clear illustration of this behavior comes from one of the most-cited studies in the behavioral economics field.

From MarketWatch • Jun. 9, 2026

"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 • Mar. 2, 2026

We’d stay up late debating string theory, behavioral economics, even the origins of satire.

From The Wall Street Journal • Oct. 30, 2025

Thomas Piketty and his colleagues work on economic inequality, Alan Krueger and David Card work on minimum wage, Kahneman works on behavioral economics.

From Salon • Feb. 1, 2025

Kahneman received the Nobel Prize in economics in 2002 for these and other contributions that ended up underpinning the discipline now known as behavioral economics.

From Seattle Times • Mar. 27, 2024