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Behavioral
Economics
 Behavioral economics os the study of the
What is elements of economics and physoclogy and

Behavioral
how they are intertwined.
To understand how and why people behave

Economics? the way they do in real world. (UChicago)

Motivation
According to Harvard Business Review,
behavioural economics “combines insights from
psychology, judgment and decision making, and
economics to generate a more accurate
understanding of human behavior.”

Behavioral economics was created to dive deeper

into the 3rd basic economic question "for whom
to produce" taking account desires and
experiences as reasons for purchases unlike
classical economics that assumes people will
choose the most rational purchase
 Key Personalities

Richard Thaler Daniel Kahneman and Amos Tversky

Gave the term Daniel wrote a book about
“behavioral “Thinking, fast and slow”.
economics”. They combined work laid
He also gave the foundation for understanding the
meaning to the cognative baisis and physoclogical
“unusualities” in factors that affect decision
human behavior making.
and where they Their research challanged
come from. traditonal economics and that
physoclogy was also a part of it.
Main contributions
to Economic Theory
This economic system allows marketers to
understand what consumers prefer and create
products which help them maintain their prices.
Traditional economics states that money and
goods are directly propertional, although
accoridng to behavioral economics it states
that good and cost are not liner and there are
other facts which contribute to this. Such as
time, labour, resources.
 End

Thank you
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 Sources

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