Learning Behavioral Economy

What influences behavioral economics? Behavior economics is influenced by bounded rationality, an architecture of choices, cognitive biases, and herd mentality. Behavior economics is crafted around many principles including framing, heuristics, loss aversion, and the sunk-cost fallacy. Do economists assume that people behave rationally? Economic actors are assumed to be self-interested and "rational," meaning that people generally make logical decisions that produce the best outcomes for themselves.

I believe that human behavior may influence economic development or recession. Economics and human behavior intersect in several ways. Economics studies how individuals and societies allocate scarce resources to meet their unlimited wants and needs. Human behavior, in turn, plays a crucial role in the decision-making process that drives the allocation of these resources.

Behavioral economic theory and traditional economic theory which have different view to economists. Nowadays, many economists began to feel behavioral economic theory is more reasonable to be accepted to general social development. In my this books, I shall attempt to indicate cases to explain whether what differences of views between behavioral economists and general economists.