A Brief Introduction to Economics and Behavioral Economics

Abstract

This chapter introduces the fundamental concepts of economics and its emerging branch, behavioral economics, emphasizing their relevance in understanding human behavior in various fields, including healthcare. It explores the shift from traditional economic theories that assume rational decision-making to models that account for cognitive biases. Historical roots, from Adam Smith's The Wealth of Nations to the development of game theory and bounded rationality, are discussed. Key questions guiding the exploration of behavioral economics in healthcare include the nature of rationality, the impact of cognitive biases, and the role of incentives in shaping behavior. This chapter provides an introduction to such issues, highlights the interdisciplinary nature of behavioral economics, and discusses its role in understanding decision-making.

Citation

Yıldırım, A. (2024), "A Brief Introduction to Economics and Behavioral Economics", Behavioral Economics in Healthcare, Emerald Publishing Limited, Leeds, pp. 1-8. https://doi.org/10.1108/978-1-83662-080-820241001