Editing Behavioral economics (section)

{{Short description|Academic discipline}}
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'''Behavioral economics''' is the study of the [[Psychology|psychological]] (e.g. cognitive, behavioral, affective, social) factors involved in the [[decision making|decisions]] of individuals or institutions, and how these decisions deviate from those implied by traditional economic theory.<ref name="ssrn.com">{{cite journal|ssrn=2040946|title=A Behavioral Framework for Securities Risk|publisher =SSRN|last = Lin|first = Tom C. W. |date = 16 April 2012|journal = Seattle University Law Review}}</ref><ref name=":0">{{Cite journal|last1=Zeiler|first1=Kathryn|last2=Teitelbaum|first2=Joshua|date=2018-03-30|title=Research Handbook on Behavioral Law and Economics|url=https://scholarship.law.bu.edu/books/35|journal=Books|author1-link=Kathryn Zeiler}}</ref>

Behavioral economics is primarily concerned with the [[bounded rationality|bounds]] of [[rationality]] of [[economic agent]]s. Behavioral models typically integrate insights from psychology, [[neuroscience]] and [[Microeconomics|microeconomic theory]].<ref>{{cite web|title=Search of ''behavioural economics'' |url=http://www.dictionaryofeconomics.com/search_results?q=behavioural+economics+&edition=current&button_search=GO}} in {{harvnb|Palgrave|ref=Palgrave}}</ref><ref name="MintonKahle2013">{{cite book|first1=Elizabeth A. |last1=Minton|first2=Lynn R. |last2=Kahle|title=Belief Systems, Religion, and Behavioral Economics: Marketing in Multicultural Environments|url={{google books |plainurl=y |id=hk5pngEACAAJ}}|year=2013|publisher=Business Expert Press|isbn=978-1-60649-704-3}}</ref>

Behavioral economics began as a distinct field of study in the 1970s and 1980s, but can be traced back to 18th-century economists, such as [[Adam Smith]], who deliberated how the economic behavior of individuals could be influenced by their desires.<ref name=":5">{{cite journal |last1=Ashraf |first1=Nava |last2=Camerer |first2=Colin F. |last3=Loewenstein |first3=George |year=2005 |title=Adam Smith, Behavioral Economist |url= https://resolver.caltech.edu/CaltechAUTHORS:20110204-074751695|journal=Journal of Economic Perspectives |volume=19 |issue=3 |pages=131–45 |doi=10.1257/089533005774357897 |access-date=}}</ref>

The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century.<ref name=":13">{{Cite book |last=Agner |first=Erik |title=A course in Behavioral Economics |publisher=Red Globe Press |year=2021 |isbn=978-1-352-01080-0 |edition=3rd |pages=2–4}}</ref><ref name=":43">{{Cite journal |last=Sent |first=Esther-Mirjam |date=2004 |title=Behavioral Economics: How Psychology Made Its (Limited) Way Back into Economics |url=https://www.muse.jhu.edu/article/178098 |journal=History of Political Economy |volume=36 |issue=4 |pages=735–760 |doi=10.1215/00182702-36-4-735 |s2cid=143911190 |issn=1527-1919 |via=Project MUSE|hdl=2066/67175 |hdl-access=free }}</ref> Behavioral economics is still growing as a field, being used increasingly in research and in teaching.<ref name=":82"/>{{toclimit|3}}