Behavioral economics integrates psychology into economic analysis from "summary" of The Economics Book by DK
Behavioral economics is a field that combines the traditional principles of economics with insights from psychology. By understanding how people actually behave, rather than how they are assumed to behave in traditional economic models, behavioral economics provides a more realistic framework for analyzing economic decisions and outcomes. One key aspect of behavioral economics is the recognition that individuals do not always make rational decisions based on maximizing their own self-interest. Instead, people are influenced by a variety of factors, such as emotions, social norms, and cognitive biases, that can lead to behavior that deviates from the predictions of traditional economic theory. For example, individuals may be prone to making decisions based on heuristics...
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