Behavioral Economics is a widely accepted term by economist. Behavioral economics uses mathematical concepts of standard economics, but factors in the cognitive and psychological variable into consideration. Behavioral economics is essential in terms of predicting good investments and decisions. A nobel prize for economics was given to Daniel Kahneman for his extensive research in psycho economical research. Many people are still critics of Behavioral economics and believe that all decisions can be made through mathematical equations. But many believe that the psychology is a major factor to consider when considering economics.
http://www.econlib.org/library/Enc/BehavioralEconomics.html
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