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About The Book

Understanding the Psychology Behind Economic Decisions Economics has long been rooted in the assumption that individuals are rational decision-makers, carefully weighing costs and benefits before making choices. However, human behavior is far more complex, often driven by emotions, biases, and cognitive shortcuts that defy traditional economic models. Behavioral Economics delves into this fascinating interplay between psychology and economics, exploring how real people make decisions in everyday life—whether in markets, businesses, policymaking, or personal finance.

This book provides a comprehensive and structured exploration of behavioral economics, presenting both foundational and advanced theories that have reshaped the field. It covers the seminal works of pioneers like Daniel Kahneman, Amos Tversky, Richard Thaler, and others who have revolutionized our understanding of economic decision-making. From bounded rationality and heuristics to prospect theory and nudging, each concept is thoroughly examined through a blend of rigorous academic insights and engaging real-world examples.

Divided into six well-defined units, the book takes readers on a journey that begins with the fundamentals of behavioral economics and gradually advances into its applications in public policy, business, finance, and digital economies. Each unit comprises four chapters, meticulously crafted to introduce key behavioral theories, experimental findings, and policy implications. Within each chapter, readers will find detailed sections that break down complex ideas into accessible discussions, enriched with empirical research and case studies. In total, the book includes twenty-four chapters and one hundred and fourteen sections, ensuring a deep and holistic exploration of the subject.

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