Behavioural economics
What Behavioural economics means in Economics A-Level, as defined for AQA.
Definitions of Behavioural economics
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Behavioural economics in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A field that questions the assumption of traditional economic theory that individuals are rational decision makers who endeavour to maximise their utility.
An approach that recognises people frequently act to benefit others at a cost to themselves, and that perceptions of fairness shape interactions.
Challenges the assumption of perfect rationality by identifying systematic cognitive shortcuts that lead to irrational choices.
The field in which a nudge is a concept, relying on cognitive biases to guide choices towards socially desirable outcomes.
A theory that challenges the traditional assumption of the perfectly rational homo economicus.
Topics that use Behavioural economics
- Aspects of behavioural economic theory (AQA A-Level)
- Behavioural economics and economic policy (AQA A-Level)
Related terms
- Consumer behaviour
- Anchoring
- Availability bias
- Bounded rationality
- Bounded self-control
- Choice architecture
- Default choices
- Equity and fairness
Using Behavioural economics in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge