Behavioral Economy Theory

<p>Behavioral economics is the combination of psychology and economics that investigates what happens in markets in which some of the agents display human limitations. However surely all of economics is meant to be about the behavior of economic agents be their firms or consumers suppliers or demanders bankers. Economics traditionally conceptualizes a world populated by calculating unemotional maximizers.&nbsp;</p><p>Behavioural theory is important as it helps businesses understand the behaviours motivations and actions of employees and customers. This knowledge can be used to increase productivity improve customer experiences and drive business growth. I shall indicate cases to explain above question to let readers understand how behavioral economy is needed to help business development.</p>