Social Cognition and Behavioral Economics

Abstract

This chapter delves into the intersection of social cognition and behavioral economics, aiming to elucidate the profound impacts of social influences and decision-making processes. By integrating insights from both fields, the authors comprehensively explore how social contexts shape individuals cognitive processes and how these influences manifest in economic decision-making. The chapter begins by providing an overview of key social cognition and behavioral economics concepts, laying the groundwork for understanding the complex interplay between social factors and decision-making behavior. They delve into various aspects of social cognition, such as the theory of mind, social perception, empathy, and decision-making biases, to elucidate how social cues influence an individual's perceptions and judgements. Throughout the chapter, they highlight the practical implications of understanding social influences on decision-making in various domains. They aim to provide valuable insights for practitioners and policymakers seeking to design interventions that promote better decision outcomes.