Question

1. how do behavioral economists view people differently than traditional economists?

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Explanation:

Traditional economists assume people are perfectly rational, self-interested, and make optimal decisions with full information. Behavioral economists integrate psychology, arguing people have cognitive biases, limited self-control, and often make decisions based on heuristics, emotions, and social context rather than strict rational optimization.

Answer:

Traditional economists view people as perfectly rational, self-interested actors who consistently make optimal, utility-maximizing decisions with complete information. In contrast, behavioral economists recognize that human decision-making is flawed: people are boundedly rational (have limited cognitive capacity), are influenced by cognitive biases, emotions, social norms, and heuristics, and often lack full self-control, leading to decisions that deviate from strict rational optimization.