Behavioural Economics
Behavioural economics is an applied scientific study that primarily aims to understand and predict people’s economic decisions/behaviours and their impact on market prices, investment returns and resource allocation. A behavioural economic study is usually carried out through an in-depth analysis of various factors influencing economic decisions, i.e., human, social, cognitive and emotional factors.
Challenging Behavioural Patterns and Perspectives
The practical application of behavioural economics is being resisted and criticised by many, on the ground that psychological evidence cannot provide coherent and consistent alternatives to rational assumptions. But nonetheless, its use as a tool in business and economic policy decision-making process is slowly gaining popularity worldwide, and is anticipated to advance as more and more decision-makers recognise the valuable information it provides.