Behavioral economics uses an understanding of human psychology to account for why people deviate from rational action when they’re making decisions. In the model of rational action assumed by traditional economics , a person is expected to weigh the benefits and drawbacks of an action and then choose the option in their own self-interest. Behavioral economic theories are used to explain most every
What Is Behavioral Economics? (Plain Language Explanation)
Behavioral Economics refers to a pattern of thoughts, feelings, and behaviors that many people experience. While it can be challenging, it's also well-understood and treatable.
Key Terms to Know About Behavioral Economics
- Symptoms: The specific ways behavioral economics shows up for you
- Triggers: Situations or thoughts that activate or worsen behavioral economics
- Evidence-based: Treatments backed by scientific research
- Comorbidity: When behavioral economics occurs alongside other conditions
3 Things Most People Don't Know About Behavioral Economics
- Behavioral Economics is far more common than most people realize
- Behavioral Economics is not caused by weakness — it has identifiable biological and psychological causes
- Most people with behavioral economics see significant improvement with the right support
Your Next Steps
Learning about behavioral economics is just the beginning. If you think you're experiencing behavioral economics, speaking with a mental health professional is the most valuable next step.