Behavioural Economics

Behavioural economics is a hybrid social science, applying psychology to economic activity and to re-examine how people arrive at decisions. It offers an alternative, psychological appraisal of the design and effects of economic policy, controls over groups of people, individual and organisational decision-making, introducing a psychological perspective. One of its core principles is the recognition that human behaviour results from both rational and irrational information processing in the human brain; and shows that irrational processes are often more predictable, and less random, than economic science previously assumed.