Economicscalendar_todayLast updated: Apr 2026
What is Behavioural Economics?
/bɪˌheɪvjərəl ˌiːkəˈnɒmɪks/
The study of how psychological, cognitive, emotional, and social factors influence the economic decisions of individuals and institutions — often irrationally.
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Everyday Example
Supermarkets place expensive items at eye level and essentials at floor level. That's behavioural economics in action — your purchasing decisions are being shaped by shelf placement, not just price.
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“The UK government's Nudge Unit used behavioural economics to increase organ donor registrations by simply changing the default from opt-in to opt-out — without any law or incentive change.”
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Did you know?
Richard Thaler and Cass Sunstein popularised the field in their 2008 book "Nudge". Thaler won the Nobel Prize in Economics in 2017 for his contributions.
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Key Insight
Humans are not rational actors. We are predictably irrational — our biases are consistent and exploitable. Knowing this is a superpower for both designing products and protecting yourself.
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