Discussion Question#2.

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Economics

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Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about whether a theory incorporates those actual mental processes?

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Running Head: BEHAVIORAL ECONOMISTS AND NEOCLASSICAL ECONOMISTS

Behavioral Economists and Neoclassical Economists
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BEHAVIORAL ECONOMISTS AND NEOCLASSICAL ECONOMISTS

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Behavioral Economists and Neoclassical Economists
Behavioral Economics refers to a subject that deals with psychology where it tries to
bring together economic decision-making processes of an individual and institutions. Therefore,
Behavioral Economists are economists that try to make preferred predictions about human
preferred behavior by connecting observations from ...


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