Hello everyone, mình là Ngọc Vũ đây. Năm nay mình sẽ là Econ mentor cho khối AS-A Level môn Economics nhé, hi vọng mọi người sẽ giúp đỡ nhiều ạ. My goal this year: 9.0+ GPA, 3A or above A Level, for A2 Econ A* Input: 2 hours/ day

Have you ever heard this term before and wonder what exactly is behavioural economics? Classical economics assumes that humans are rational thinkers. They have full access to perfect information, have sufficient time for making the best decision. However, this is not always the case in reality. Humans in real life are considered irrational and act on their self interest. Why? Because, us, a normal human, have different preferences for goods and services. Some people will highly likely to purchase an idol’s album even though this is not the best option for their sake simply because we are really into it. This makes the economic models cannot be applied straightforwardly to real-life settings. In that case, behavioural economics will take place for the explanation. Behavioral economics is defined as a field that integrates psychological principles with economic theory to challenge traditional assumptions of rationality and selfish preferences, emphasizing the role of emotions, decision-making under risk, and the impact of framing on outcomes. In simpler words, it investigates people’s behaviour in the economy, examining thoughts, preferences and irrationality. This plays a pivotal role in how economic agents make their decisions, such as businesses and policy makers. For example, by acknowledging how consumers perceive the value of products, firms might design the best-fit message delivering to their customers. Also, acknowledging human behaviours might aid companies and governments to account for potential risks and suitable modifications. -By Vu Thanh Hao Ngoc 12AL1-