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KembaraXtra-Psychology – Behavioural Decision Theory
Behavioural decision theory is an approach to judgment and decision-making that examines how people actually make choices, often deviating from formal normative models such as expected utility theory or Bayesian reasoning. It incorporates findings about cognitive biases, heuristics, subjective probabilities, and emotional influences. By highlighting systematic departures from rational models, behavioural decision theory bridges psychology and economics in explaining real-world choice behavior.
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