Behavioural economics

Following flooding, described by the Environment Agency as a ‘once in a century event’, there is a sharp increase in the number of residents of a large town who buy additional flood insurance.

Which one of these combinations of biases in decision making are the residents most likely to have experienced?

Discuss the view that individual economic agents will always act as rational decision makers so as to maximise their utility.

The behaviour of a consumer buying a 75-inch large screen TV is biased due to bounded rationality and the anchoring effect. This implies that the choice of which TV to buy is

Which one of the following is most likely to be associated with behavioural economic