Behavioral economics along with the related sub-field,
behavioral finance, studies the effects of
psychological, social,
cognitive, and emotional factors on the
economic decisions of individuals and institutions and the consequences for
market prices,
returns, and the
resource allocation. Behavioral economics is primarily concerned with the
bounds of
rationality of
economic agents.
Behavioral models typically integrate insights from
psychology,
neuroscience and
microeconomic theory; in so doing, these behavioral models cover a range of concepts, methods, and fields. Behavioral economics is sometimes discussed as an alternative to neoclassical economics.