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Question
how do behavioral economists views of human decision - making differ most significantly from traditional economists? they believe people always make rational financial decisions they recognize that emotions and biases influence financial choices they assume people have perfect information about all purchases they think people only care about maximizing profits
Traditional economists assume rational - decision making with perfect information and profit - maximization. Behavioral economists, however, consider psychological factors like emotions and biases in decision - making.
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They recognize that emotions and biases influence financial choices