Category Archives: Behavioral Economics

Behavioral Economics studies social, cognitive and emotional factors to understand the economic decisions of individuals and institutions performing transaction functions. Those functions are not limited to merely fiscal exchange (i.e., it also studies social value as a real commodity), and are participated in by consumers, borrowers and investors who are seeking value, either tangible or assumed. Behavioral Economics seeks to understand how those transactions affect market prices, returns and any subsequent resource allocation. Behavioral Economics most often concerns itself with modeling the bounds of the behavioral rationality of all economic agents (e.g., selfishness vs. self-control) and typically integrates psychology with neo-classical economic theory.