INTRODUCTION TO BEHAVIORAL ECONOMICS

This book compares conventional economics, which is based on rationality and maximization of economic decisions, with Behavioral Economics, which studies how people actually behave in practice. By observing the functioning of the human brain, the author explores the limits of rationality and how our decisions are influenced by biases, heuristics, and factors such as reference points, time, decision frames, and probability calculations.

You will find an in-depth analysis of how these factors affect key decisions related to savings, consumption, the valuation of money, and risk perception, with a focus that ranges from personal finance to macroeconomic phenomena. In addition, the relationship between happiness and money is addressed, offering practical examples of how Behavioral Economics can be applied to improve decision making. The book concludes with recommendations for overcoming cognitive limitations and making better decisions.