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            • Behavioural economics
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            • A branch of ECONOMICS that concentrates on explaining the economic decisions people make in practice, especially when these conflict with what conventional economic theory predicts they will do. Behaviourists try to augment or replace traditional ideas of economic rationality (homo economicus) with decision-making models borrowed from psychology. According to psychologists, people are disproportionately influenced by a fear of feeling regret and will often forgo benefits even to avoid only a small risk of feeling they have failed. They are also prone to cognitive dissonance, often holding on to a belief plainly at odds with new evidence, usually because the belief has been held and cherished for a long time. Then there is anchoring: people are often overly influenced by outside suggestion. People apparently also suffer from status quo bias: they are willing to take bigger gambles to maintain the status quo than they would be to acquire it in the first place. Traditional UTILITY theory assumes that people make individual decisions in the context of the big picture. But psychologists have found that they generally compartmentalise, often on superficial grounds. They then make choices about things in one particular mental compartment without taking account of the implications for things in other compartments. There is lots of evidence that people are persistently and irrationally overconfident. They are also vulnerable to hindsight bias: once something happens they overestimate the extent to which they could have predicted it. Many of these traits are captured in PROSPECT THEORY, which is at the heart of much of behavioural economics. The Economist
          • Example sentence(s)
            • Behavioral economics blossomed from the realization that neither point of view was correct. - Library Economics Liberty by
            • Behavioral economics explains why we procrastinate, buy, borrow, and grab chocolate on - Harvard Magazine by
            • Economics orthodoxy may look down on behavioral economics, but it's the most important development in economics in a long time. - The Christian Science Monitor. by
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    • Hindi
      • Economics
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            • व्यवहारपरक अर्थशास्त्र
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            • यह अर्थशास्त्र की वह शाखा है जिसमें निर्णय प्रक्रियाओं का विश्‍लेषण मनोविज्ञान के सिद्धांतों पर आधारित होता है। Own research - by Suyash Suprabh
          • Example sentence(s)
            • व्यवहारपरक अर्थशास्त्र के सिद्धांतों से उपभोक्‍ताओं की रुचियाँ जानने में मदद मिलती है। - विकिपीडिया by Suyash Suprabh
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    • French
      • Economics
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            • Économie comportementale
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            • L'économie comportementale est un champ de la science économique qui étudie le comportement des êtres humains dans les situations économiques. Wikipedia - by Cizc
          • Example sentence(s)
            • L'économie comportementale est un domaine de connaissance qui étudie comment les individus et les institutions font leurs choix économiques, et les conséquence de ceux-ci. - pagesperso-orange by Cizc
            • L'économie comportementale est un champ récent de la science économique qui étudie le comportement des êtres humains dans des situations économiques variées. - agro-montpellier.fr by Cizc
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