Behavioral economics is a field that combines insights from psychology and economics to understand how people make decisions. It examines how emotions, cognitive biases, and social influences affect economic choices, often leading individuals to act in ways that deviate from traditional economic theories, which assume rational behavior. This discipline explores various concepts, such as loss aversion, where people prefer to avoid losses rather than acquire equivalent gains, and anchoring, where individuals rely heavily on the first piece of information they encounter. By studying these behaviors, researchers aim to improve economic models and inform public policy, marketing, and personal finance.