Behavioral Economics

The study of psychological, cognitive, and emotional factors on economic decision making. This field acknowledges that economic decisions may be irrational and may be influenced by both conscious and subconscious factors. Behavioral economists and scientists often use experiments to uncover consumer behaviors and decision making patterns. Advances in this field have helped shed light on why we sometimes see notable differences between what research participants self-report and what they actually do .

An example of a book that has advanced awareness of decision-making behavior is Daniel Kahneman’s Thinking Fast and Slow.  New York: Farrar, Straus and Giroux, 2011.