Introduction Behavioral Economy

<p>Behavioral economics combines elements of economics and psychology to understand how and why people behave the way they do in the real world. It differs from neoclassical economics which assumes that most people have well-defined preferences and make well-informed self-interested decisions based on those preferences. Economic behavior refers to the actions individuals take related to work buying saving giving and gambling which are studied in psychology and economics. It encompasses decisions such as saving for the future managing debt and the psychology of money itself.Behavioral economics is a field of study aimed at understanding why people make economically irrational decisions. Rational choice theory holds that consumers make choices that maximize their utility. In reality people can be swayed or distracted from doing so.</p><p>In my this book I shall indicate our social some business organizational cases to explain why organizations need to learn how to know consumer behavior in order to bring more economic benefits.</p>