Behavioral economics extends traditional economic models by
A) including insights from psychology and human cognition models.
B) modeling behavior rather than prices.
C) admitting that individuals are irrational.
D) admitting that incentives are very important.

Question

Quizplus · Accepted Answer

Behavioral economics extends traditional economic models by including insights from psychology and human cognition models, such as understanding how emotions influence decision-making, to provide a more realistic representation of how individuals make economic decisions.

Behavioral Economics Extends Traditional Economic Models by