Understanding Behavioral Economics: Insights and Implications

This study explores behavioral economics by integrating psychology and economics, analyzing biases in decision-making through games involving social preferences, risk, and intertemporal choices. Results reveal fairness, loss aversion, and present bias in decisions, impacting social reciprocity, risk-taking, and procrastination. Findings suggest practical recommendations such as leveraging norms, framing losses, and employing commitment devices to address biases.