What is Behavioral Economics?
Behavioral Economics is a recent academic trend characterized by the integration of psychology into economic analysis (which is why it has also been called Economic Psychology).
Behavioral Economics is based on the need for a deep understanding of human behavior, to the extent that it is as useful for managing economic and business models as the factors traditionally considered.
For this reason, the main contribution of BEHAVIORAL ECONOMICS, which clearly distinguishes it from traditional models, is that it focuses on WHAT IS (reality) and not on WHAT SHOULD BE (theory), and for this it is based on experiments of direct observation of behavior (empiricism) and on the contributions of neuroscience (analysis of brain activation).
Currently there is a very important international support in Behavioral Economics. Therefore, its applications are already adapted by almost all large multinationals, by numerous governments (especially the UK and the USA, where there are specific units operating under the discipline of Behavioral Economics) and by the main international business schools (Behavioral Economics is a leading program at Harvard and Penn).