Behavioral economics is the discipline that incorporates the effects and traits of psychology, cognitive biases, emotional, social and cultural factors in economics to explore why humans sometimes make irrational decisions and choices, and the mechanisms by which their behavior does not follow the predictions of standard economic models. Even though this field does not reject the concept of rationality in economic models, it sides with the notion that the concept of rationality which has been used to construct many standard economic models is too narrow. Apart from the proposition of broadening the prevalent conceptual framework of rationality, behavioral economics is also contributing in framing policies or choices in order to help people avoid relatively bad and harmful decisions.
Click on the following links to know more about books based on Development Economics!