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Behavioral Economics
The belief that economics, similar to behavioral psychology, is a science of highly organized behavior. In behavioral economics, scientific research is applied to human and social-cognitive and emotional biases to better understand and explain how they affect elements of the economy such as market prices, returns, and consumer choice. The study of behavioral finance and economics encompasses social psychology within large groups as well as individual psychology. Many of the theories are concerned with the rationality, or lack thereof, of economic agents.
As a discipline, behavioral economics is regarded as a sophisticated and well-developed component of beha vior analysis that has existed since the late 1700s. In the early stages of development, concepts linking human behavioral theories and psychology to economic principles emerged in studies ...