Define behavioral economics and give an example

Behavioral economics refers to the study of psychology involved during the decision making processes of firms and individuals. The study analyzes the effects of emotional, cultural, social, and psychological factors affecting people when making individual decisions. General, it draws attention to economics and psychology to explore people's irrational decisions and behavior. The study plays an integral role when analyzing the psychological factors that affect individuals' economic decision-making process. It enables marketers to understand the human mind when making important decisions. An example of behavioral economics is when using the rationalized cheating principle, a person can take an object from the workplace than take money in cash equivalent to the object's price.