In general, in different types of economics, attention is paid to people's behavior. Economics is tied to the study of human behavior. Of course, traditionally, we try not to open our eyes to the world of economics by examining emotions and social psychology, and this important subject matter continues to exist with its numbers and models. But the story is not that simple. The role of human behavior in the economy cannot be ignored. Once experts and specialists realized that any point of view might be wrong, they gradually became more flexible, and new topics such as behavioral economics were added to this important branch of science. What exactly does behavioral economics mean? In this article, you will read more about this interesting topic, especially in today's world.

Where did behavioral economics start

Richard Thaler, winner of the Nobel Prize in Economics and professor of economics at the University of Chicago, has changed the way we think about human behavior. He is known as the father of Behavioral Economics; It is a field in economics that combines different perspectives on psychology, judgment, and economics and seeks to ultimately gain a more accurate view of human behavior.

Before Richard Tyler made his mark on the world of economics with the concepts of behavioral economics, knowledge of human behavior in economics was based on computational models and assumptions. Human behavior in economics has evolved over time, relying on rationality and ignoring emotions and psychology. This was something that Richard Taylor did not accept and criticized.

An example of the importance of behavioral economics

There are numerous examples that show that people's behavior is very complex and that companies and organizations must examine them more closely to control the economy; At McDonald's famous restaurants, for example, customers are often asked when they receive an order: "Would you like your order to be served and prepared in a larger size?" The answer to this question, or rather the offer, is usually yes.

You might think that restaurant customers usually respond positively to such a question, and general conclusions can be drawn from this process; But it is not. In Chinese restaurants, on the other hand, the answer is yes when asked if they would like their main meal to be served in smaller portions. This means that in different contexts and conditions, customer behavior and in larger dimensions may be very diverse and different.

What does Behavioral Economics say

Imagine you want to buy a computer. To simplify your decision-making work, you go to famous brands or models that you have already had examples of. You go to the seller's site and of course the story does not end here. There you will encounter different models. It is also possible to buy custom products; This means that you can buy your own custom PC by choosing from a variety of options.

Which features and options do you choose for your custom computer? ‌ The choice gets a little difficult. In this situation, most sellers will show you the basic products and offer you various features that you can choose and add to your personal system. The way in which the various features of a computer are introduced to you has a direct impact on your final decision.