Behavioral economics recognizes that people frequently make errors, but these errors generally cancel out in such a way that neoclassical models are sufficient for predicting economic outcomes.

Question

Quizplus · Accepted Answer

Behavioral economics highlights that the systematic biases and errors in human decision-making often do not cancel out and can significantly impact economic outcomes, challenging the predictions of neoclassical models that assume rational behavior.

Behavioral Economics Recognizes That People Frequently Make Errors, but These