We Are Governed by Emotions

Picture: Sourced from awaited opinion

Human behaviour tends to repeat itself and it is somewhat predictable. Rational behaviour states that people make decisions based on the optimal level of benefit with a maximum level of utility. Therefore when making a choice we gather all the information available and tend to think that our decision is independent of others.

Truth is we tend to take the well-being of others into account and have a tendency to favour evidence that confirms our existing biases. In this case rationality holds no ground, as intuitively we have a need to fulfill our hard-wired desire to go with the crowd.

Hence, behavioural economics is important as it helps...read more