Category: Education

Behavioral Economics is an exciting field that blends economics with psychology to explain why people often make decisions that deviate from pure rationality. Traditional economics assumes that individuals act logically to maximize utility. In contrast, behavioral economics shows how cognitive biases, emotions, and social influences shape everyday financial and personal decisions. From loss aversion to anchoring bias and the endowment effect, these insights reveal the hidden forces behind consumer behavior, investment strategies, and policy responses.