Behavioral Economics examines how psychological, social and cognitive factors impact decision-making. In traditional economic models, humans are considered to be perfectly rational - meaning that they make “perfect” decisions based on price. In practice, human behavior is more unpredictable, or “predictably irrational.” Behavioral economics studies how people respond to stimulus when they make decisions and why they respond that way.

Prerequisite: Completion of Economics or one semester of AP Economics. UC approved.

Interview with: Mr. Lizardo

Produced by: Evan Cheng