Behavioral economics is the combination of economics and psychology that studies the effects of emotional, psychological and social factors upon the economic decisions of people or institutions.

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Behavioral Economics
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Definition
Behavioral economics is the combination
of economics and psychology that studies
the effects of emotional, psychological and
social factors upon the economic
decisions of people or institutions.

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Prevalent themes in behavioral
finances:
• Heuristics
• Framing
• Market inefficiencies

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Behavioral game theory
Behavioral game theory looks to
understand how individuals actually
behave in strategic situations through the
use of experimental settings.

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