BEHAVIORAL ECONOMICS

n. the study of how cognitive, emotional, and social factors on both the individual and institutional level affect decision-making in economics and finance. It makes use of both prediction and analysis to modify behavior. It also relates to how economic principles such as the law of supply and demand are applied.

BEHAVIORAL ECONOMICS: "Under Behavioral Economics, the increased or decreased consumption of tobacco and alcohol can be discussed in relation to the demand and the price for these commodities."
Cite this page: N., Pam M.S., "BEHAVIORAL ECONOMICS," in PsychologyDictionary.org, April 7, 2013, https://psychologydictionary.org/behavioral-economics/ (accessed September 16, 2020).
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