Skip to main content

This link is exclusively for students and staff members within this organisation.

Unauthorised use will lead to account termination.

Previous

Using quantitative skills in exams

Next

Country S

The importance of behavioural economics

Are people rational?

Traditional economic analysis assumes that economic agents act rationally when taking decisions, but is this always the case? Maria Kozlovskaya looks at how behavioural economics sets out to explore this question

rational decision-making, behavioural economics, loss aversion

A good understanding of consumer behaviour is the foundation of economics. If we know what people put in their supermarket trolley, we can predict the demand for each product. The importance of this knowledge cannot be overstated. Such life-changing phenomena as inflation, economic growth and unemployment are all outcomes of the supply-and-demand interaction.

Your organisation does not have access to this article.

Sign up today to give your students the edge they need to achieve their best grades with subject expertise

Subscribe

Previous

Using quantitative skills in exams

Next

Country S

Related articles: