Behavioural Economics Flashcards
1
Q
What is Behavioural Economics?
A
Behavioural economics (strongly influenced by psychology, sociology and neuroscience) tellsus that human behaviour is far more complex than the assumptions of rational consumer choice.
2
Q
Nudge Theory
A
A method designed to influence consumer choices in a predictable way without offering financial incentives or imposing sanctions and without limiting choice.
3
Q
Adverse Selection
A
Refers to a situation where one party in a transaction has more information about the quality of product being sold than the other party
