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What is Behavioral approach?

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Anonymous

7y ago
Updated: 8/12/2021

Here's an example:

Store A sells good X for 100$. Store B sells the same good X for 200$. The stores are identical in all other parameters.

Economic theories suggest that all people will buy good X only in store A because it's cheaper. Reality on the other hand will have a few people going to the store B.

To explain this the behavious of people is used, thus behavioral approach.

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Mina Hyatt

Lvl 10
4y ago

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