1.2.3/4– Behavioural Economic Theory & Policy

A* AQA A/AS-Level Economics notes on behavioural economic theory and policy, covering the third and fourth topic in individual economic decision making. Includes key terms, context, evaluation, and explanation covering all specification points for this topic.
(Specifications 7135 & 7136)

Includes:

• Bounded rationality and bounded self-control.
• Biases in decision making: rules of thumb, anchoring, availability and social norms.
• The importance of altruism and perceptions of fairness.
• Choice architecture and framing.
• Nudges.
• Default choices, restricted choice and mandated choice.
• Government policy and application of behavioural economic theory