Game Theory and Behavioral Economics

Game Theory is a study of decision-making where individuals or groups make choices based on the expected actions of others, often in competitive situations. It helps analyze strategic interactions, like in business or politics. Behavioral Economics combines insights from psychology with economics to understand how people actually behave in real-life situations, often deviating from traditional economic theories that assume rational decision-making. Through experiments, it explores how emotions, biases, and social influences affect choices, revealing why people sometimes act against their own best interests. Together, they deepen our understanding of economic behavior beyond standard models.