Faculty cochairs Francesca Gino and John Beshears discuss the concept of behavioral economics. Behavioral economics is a disciple that combines insights from the fields of psychology, judgement and decision making and economics. Behavioral economics suggests that humans can change the environment in which people are making decisions in order to favor better decision making for themselves and their organizations. There are four steps in order to change the decision making context. First, identify the problem. Second, what is the psychology that is driving the problem. Third, design a change. Fourth, test effectiveness.
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