Behavioral economics

is a subfield of economics that integrates insights from psychology in the analysis of economic decision-making. It is commonly known for focusing on heuristics (rules of thumb as opposed to maximisation behavior) and biases (deviations from the homo economicus model/expected utility theory, e.g., loss aversion). Related fields are experimental economicssubfield of economics that uses experimental methods/economic experiments to study individual and collective decision-making. By giving the researcher freedom to manipulate factors of interest, difficulties to establish causal rel... More and behavioral economists commonly apply economic experimentstypically use (cash) incentives to study economic decision-making under controlled conditions in abstract (laboratory) or somewhat contextualised (field) settings. More.