Behavioural Economics: Psychology of Decision Making

Behavioural Economics: Psychology of Decision Making is a comprehensive exploration of the intersection between economics and psychology, designed to help readers understand the psychological underpinnings of economic decisions. The book examines how individuals and groups make choices under uncertainty, how cognitive biases and heuristics shape behavior, and how these insights challenge traditional notions of rationality in economics.
Structured to be accessible yet rigorous, the text covers foundational concepts such as bounded rationality, prospect theory, and intertemporal choice, as well as advanced topics including nudges, behavioral public policy, and the ethics of behavioral interventions. Through an interdisciplinary lens, it introduces readers to key experiments, field studies, and theoretical debates that have shaped the discipline.
By blending theoretical exposition with real-world applications, the book highlights how behavioral economics informs policy in areas like health, finance, environmental sustainability, and development. It also addresses criticisms of the field and suggests pathways for future research. Whether you are a student encountering the subject for the first time, a researcher seeking depth, or a practitioner looking for practical insights, this book offers a nuanced and
iv
engaging guide to understanding and applying the psychology of decision-making in economic contexts.