Behavioural Economics

The study of how psychological and emotional factors affect economic decision making among consumers and businesses.

Hawthorne Effect Definition

Hawthorne Effect Definition

The Hawthorne Effect occurs when individuals adjust their behaviour as a result of being watched or observed. For instance, employees may work harder and more diligently knowing their manager is closely watching, or children behave better because they are being watched by their parents.

Game Theory Definition

Game Theory Definition

Game theory is the study of strategic decision making between individuals. Although termed ‘game theory’, it refers to any interaction between multiple people where each person’s pay off is affected by the decision made by others.