2022_심화영어

urther Reading F Behavioral economics is a branch of economics that studies the impact of psychological, cognitive, and emotional factors on economic decision-making. It incorporates insights from psychology, sociology, and neuroscience to provide a more accurate understanding of how individuals and institutions make decisions. One of the basic principles of behavioral economics is that humans do not always behave rationally in their decision-making. Instead, they are often influenced by a range of cognitive biases, rules of thumb, and social norms that can lead to suboptimal outcomes. For example, people may be overly influenced by immediate rewards and fail to consider long-term consequences, or they may be more willing to take risks in certain situations than in others. Behavioral economics has a number of important applications in policy-making, business, and finance. One example is the use of “nudges” to encourage people to make better decisions. A nudge is a small change to the decision environment that makes it more likely that people will choose a particular option. For example, placing healthier foods at eye level in a dining hall can nudge people to make healthier food choices. Another application of behavioral economics i s i n t he de s i gn o f i nc en t i ve s cheme s . Traditional economic theory assumes that peopl e are mot ivated sol e l y by f inanc ial incentives, but behavioral economists have shown that other factors, such as social recognition, can also be 05 10 15 20 25 Behavioral Economics Get Ready 1. Are you spending rationally? 2 . What do you pay attention to when buying things? 3 . Have you ever bought something you didn’t want to buy? 4 . If you have, why? 96 Lesson 3