Behavioural economics

Behavioural economics is like learning how people make choices about things. When you want to get a toy, for example, you think about whether you have enough money to buy it, if it's worth it, or if there's something else you want more.

Behavioural economics helps us understand why people make these kinds of decisions, and how we can use that knowledge to make things better. It's kind of like magic! For instance, people are more likely to buy healthy snacks if they are placed at eye level or if they are in colourful packages.

This is why companies study behavioural economics. It helps them to understand what types of things people like, and how they can best persuade people to buy their products.

Even governments and policymakers use behavioural economics to encourage people to be healthier or to make better decisions for the environment. By understanding how people think and feel, they can design things in a way that makes it easier for people to make better choices for themselves and for others.

In summary, behavioural economics helps us to understand why people make certain decisions and how we can use that knowledge to make better choices for ourselves and for society.