What is behavioral economics?
Behaviorial economics studies the effects of insights from psychology on economic decisions.
Daniel Kahneman, a psychologist, was awarded the Nobel prize in economics in 2002, for his work in judgment and decision making. Kahneman’s work is the subject of his 2011 book, titled Thinking, Fast and Slow. He is the only non-economist to receive the Nobel prize in economics.
Kahneman in his book refers to intuition as operating automatically and quickly with little or no effort. In contrast, are effortful mental activities demanding attention, including complex computations. Two plus two requires no effort, but 17 . . . [more]