Behavioral Economics: When Psychology and Economics Collide
Behavioral Economics: When Psychology and Economics Collide
What Is a Good Decision? (1x1)
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Begin by examining “rational choice” models of decision making from traditional economics, which assume consistent, foresighted, and self-interested decision makers. Then consider how this concept fails to explain many human decisions that appear counterintuitive or paradoxical. Identify two fundamental limitations that challenge our decision-making process.