Integrating Economics with Psychology

This Nobel Prize winner lays a foundation for behavioural economics.

12 mins
What is it about?




Economists aim to develop models of human behavior and interactions in markets and other economic settings. Many models employ key assumptions about what governs human behavior; a particularly common assumption is that of rationality. But we humans behave in complex ways, and although we try to make rational decisions, we have limited cognitive abilities and limited willpower.