We don't always behave the way economic models say we will. We don't save enough for retirement. We order dessert when we're supposed to be dieting. We give donations when we could keep our money for ...

Economic man represents a rational actor, aiming to maximize utility and satisfaction. Discover his role and the impact the concept has in economic theories and models.

Regret theory postulates that decision‐makers do not solely evaluate outcomes based on traditional expected utility; they also incorporate the anticipated emotional response resulting from realising ...

Clinicians who engage patients and family members in shared decision-making know that people don’t always make healthcare decisions based on what is rational. The irrationality of healthcare decisions ...

States and financial bodies using modelling that ignores shocks from extreme weather and climate tipping points Flawed economic models mean the accelerating impact of the climate crisis could lead to ...

Economic models used by governments, central banks and investors are “increasingly understating” climate change risks as the world continues to heat up. A new report led by the University of Exeter’s ...

Decision theory is a cornerstone of economic analysis, providing a framework for understanding how individuals and institutions make choices under conditions of uncertainty and risk. At its core, the ...