Behavioral Public Economics

Behavioral Public Economics is a field that combines insights from psychology and economics to understand how people make decisions regarding public policies. It examines how real human behavior often deviates from traditional economic models, which assume that people are perfectly rational. By recognizing factors like biases, emotions, and social influences, this field aims to design better policies that align with actual behaviors. For example, it can help in creating more effective tax systems or public health initiatives that encourage healthier choices, ultimately improving overall well-being in society.