The Role of Behavioral Insights in Economic Decision Making Education

Abstract

The study of economic decision-making has traditionally relied on models assuming rational actors and fully informed choices, yet real-world behavior often deviates from these assumptions. Behavioral economics integrates insights from psychology, neuroscience, and social sciences to explain these deviations, revealing the influence of cognitive biases, heuristics, and social norms. This article explores the role of behavioral insights in economics education, emphasizing their potential to enhance student understanding of decision-making processes, policy evaluation, and personal and business financial choices. By incorporating behavioral experiments, interdisciplinary perspectives, and experiential learning methods, educators can provide a more realistic and engaging framework for analyzing economic behavior. The integration of behavioral perspectives not only bridges theory and practice but also cultivates critical thinking, adaptive skills, and ethical reasoning, preparing students for complex, dynamic economic environments. Challenges in curriculum design, assessment, and resource availability are discussed, highlighting the importance of pedagogical innovation in achieving effective learning outcomes.