What is the behavioral economics approach?

The behavioral economics approach refers to a method that uses psychological experimentation when developing theories about the process of decision making. The method identifies a range of biases resulting from how people think and feel. According to the approach, individuals are not self-interested but are influenced by maximizing benefits and minimizing costs, affecting the decision people make. Moreover, it nullifies that people's choices resulted from salient information readily available on memory and subjected by physiological and emotional states.