Behavioral economics combines psychology with economics to help explain a consumers decision-making around money. Learn principles, examples and other details related to the theory.

Behavioral economics is the study of why people make decisions about money, including how they spend, invest, ... Black Monday: Definition in Stocks, What Caused It, and Losses. By.

Now the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the Booth School of Business, he is today considered a founder of the field of behavioral economics.

Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by ...

Drawing on research in behavioral economics, in the sections that follow, we review three sets of possible interpretations for understanding the empirical facts related to the entry into, and ...

A recent story on National Public Radio ( link) gives an overview of a subfield of economics called behavioral economics. Behavioral economics incorporates elements of psychology into economic ...

Key Theories in Behavioral Economics. The following paragraphs describe a few crucial biases and thought processes that we all harbor and play a role in our investment decision-making.