ABSTRACT
Behavioral science offers tremendous potential for the development of effective policies. Since voluntary behavior is preceded by a choice to act, behavioral science is closely linked with the study of decision-making. Decision-making is a cognitive process that leads to an individual picking an opinion or action from a set of several possible options. Within the behavioral sciences, behavioral economics is an interdisciplinary field that utilizes psychosocial actors and constructs to understand "economic" decisions and behavior, typically in the form of financial choices, incentives, and tradeoffs where risk is involved. To realize the potential, it is necessary to understand the theories and mechanisms used to study behavior. Traditionally, much of this was understood through the lens of classical economic theory, but trends have expanded to include psychology, sociology, and other fields, leading to areas of scientific study commonly referred to as behavioral sciences and behavioral economics.
