Behavioral Economics: Crash Course Economics

The video explores behavioral economics, highlighting how it differs from classical economics by considering psychological, social, and emotional factors in decision-making. It discusses bounded rationality, perception's impact on pricing, and the framing effect. The video also covers nudge theory and risk attitudes, emphasizing loss aversion. Through examples like the ultimatum game and real-world applications, it illustrates how behavioral economics provides a more nuanced understanding of human behavior.

How do psychological pricing strategies influence consumer perceptions?

What is Nudge Theory, and how can it be applied in public policy?

Discuss the concept of loss aversion and its impact on consumer behavior.

In what ways can understanding behavioural economics improve business practices?