BEHAVIORAL ECONOMICS

Economics is a study of human behavior, but it is not the only field that can make that claim. The social science of psychology also sheds light on the ch~ice” that people make in their lives. The fields of economics and cytology usually proceed independently, in part because they address a different range of questions. But recently, a field called behavioral economics has emerged in which economists are making use of basic psychological insights. Let’s consider some of these insights here.

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