Behavioural economics enables us to better understand human behaviour, which includes irrational nuances unlike previous models typically relied on by researchers and marketers.

  • We have two ways of thinking: System 1, which is intuitive and emotional, and System 2, which is more deliberate, reasonable and requires more effort
  • We use anchors, shortcuts and rules for making decisions
  • We are prone to a lot of cognitive errors, such as loss aversion, availability heuristic, and herd behaviour.