Behavioral Economics is a field that combines insights from psychology and economics to understand how people make decisions. Unlike traditional economics, which assumes that individuals always act rationally to maximize their benefits, behavioral economics recognizes that emotions, biases, and social influences often lead to irrational choices. For example, people might spend more on a product simply because it’s on sale, even if they don’t need it. This discipline explores various concepts, such as loss aversion, where individuals prefer to avoid losses rather than acquire equivalent gains. By studying these behaviors, researchers aim to improve policies and strategies in areas like finance, healthcare, and marketing, ultimately helping people make better choices.