Where is the line between behavioral economics and the study of behavior without economics? I was asking myself this question while listening to my podcasts this week, specifically Freakonomics. Freakonomics Radio is all about connecting all kinds of behavioral economics. The core of behavioral economics is studying psychological, cultural, and social factors that go into one’s economic decisions. 

One of the Freakonomics episodes is about the irony of safety inventions. For example, as football helmets get safer and safer there tends to be an uptick in concussions and other head injuries in the sport. This is because when people feel there are more safety measures in place they are free to be more reckless. That all makes sence to me but the intersection between economics and psychology is hard to see in tha example. The economic element to this dilemma is that helmets, seatbelts, etc are being further developed, and the psychology element is that more safety encourages more dangerous activity. 

This kind of question (where is the intersection between psychologically studying Behavior versus studying behavior in the context of economics?)  relates to my essential questions because i’m wondering if more knowledge of behavioral economics can lead to better financial decision making. If everyone could see the connection between behavior and economics, maybe we would all be smarter with our money.