Behavioral economics is a field of study aimed at understanding why people make economically irrational decisions. Rational choice theory holds that consumers make choices that maximize their utility.
Behavioral economics combines elements of economics and psychology to understand how and why people behave the way they do in the real world. It differs from neoclassical economics, which assumes that most people have well-defined preferences and make well-informed, self-interested decisions based on those preferences. Behavioral economics (BE) uses psychological experimentation to develop theories about human decision making and has identified a range of biases as a result of the way people think and feel. BE is trying to change the way economists think about people's perceptions of value and expressed preferences. We need behavioural economics to understand the daily life decisions of customers and anyone else. It is used in the health sector, insurance sector, corporates, multi-national companies etc. In all sectors, it has a significant role to play. Companies are inhabiting behavioural economics to rising their sales. How transport may help economic development in possible?
In my this book, I shall indicate our daily fun human behavior to explain how and why our daily lives any matters, may have relationship to behavioral economy to let readers understand.