Behavioral Economics is a branch of economics that examines human behavior in economic decision making.
In behavioral economic, humans are considered as creatures that are not always rational in decision making.
Behavioral Economics Theory was first introduced by Daniel Kahneman and Amos Tversky in the 1970s.
Behavioral Economics studies psychological, social, and emotional factors that influence economic decision making.
One of the important concepts in behavioral economics is cognitive biases or cognitive bias, which is an error in processing information that can result in irrational decisions.
Behavioral Economics also examines the concept of framing, namely how to deliver information can affect one's perception and decision.
In Behavioral Economics, the concept of opportunity cost is also studied, namely the costs that must be borne when choosing an alternative in decision making.
Behavioral Economics also examines consumer behavior in making purchasing decisions, including factors that influence consumer preferences.
In behavioral economics, the concept of nudge is used to influence human behavior by giving small encouragement that can make them more likely to make the desired decisions.
Behavioral Economics also examines financial behavior, including factors that affect investment and risk taking.
