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behavioral economics

/ˌbɛhəˈvɪərəl ɪkəˈnɒmɪks/ · be·ha·vi·or·al·e·co·nom·ics
noun
  1. The study of how psychological, social, and emotional factors influence economic decisions. The professor's research in behavioral economics focused on the impact of cognitive biases on consumer spending.
noun
  1. A field of study that applies insights from psychology to improve economic policy and decision-making. The government's behavioral economics unit used data analysis to design more effective public health campaigns.
Did you know? Behavioral economics has been influential in shaping public policy, with applications in areas such as taxation, public health, and environmental conservation. For example, the 'nudge theory' developed by Richard Thaler and Cass Sunstein uses behavioral economics principles to design policies that 'nudge' people towards better choices without restricting their freedom.
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Written by Lexi Wordsworth, Dictionary Editor 0 lookups Added Jul 22, 2026