Behavioural Theory in Action (Behavioural Economics)
- AS, A-Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 4 Apr 2018
In this video we look at a range of key behavioural ideas such as loss aversion, choice architecture, framing, priming, anchoring, default bias, bounded rationality and social norms.
We then cast an eye on real world examples of business who have drawn on behavioural insights for commercial gain. From Five Guys to Pret and from Amazon to Booking.com, lots of firms utilise the biases of consumers to make more money.
"An economist can no longer be said to have a good training in economics if he or she is not familiar with the main themes of behavioural economics, and the strengths and weaknesses of the approach." (Paul Ormerod)