9.8: Outcome- Behavioral Economics

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What you’ll learn to do: describe the behavioral economics approach to understanding decision making

If a friendly stranger handed you $20, how would you feel? What if you lost $20 the next week? Do you think that you’d feel sad about it, or would just be happy that you broke even? In this outcome, you’ll see that most people would still be sad about the $20 loss. Economic decisions are not always logical. Read on to find out why!

LEARNING ACTIVITIES

The learning activities for this section include:

Reading: Behavioral Economics: An Alternative Viewpoint
Video: Behavioral Economics
Self Check: Behavioral Economics

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.

Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution