Behavioural economics is a hot topic. Behavioural economics research is regularly featured in the top academic journals in economics and science. It has a high profile on social media, and journalists regularly write about the new books and research emerging in the field. Governments and other policy-makers, from all over the world, are embedding insights from behavioural economics into their policy designs, as, increasingly, are moremainstream economists when designing their models.

What is behavioural economics and why so much interest? Behavioural economics extends economic principles by allowing that our decisions are affected by social and psychological influences, as well as a rational calculation of benefits and costs. It also broadens economics, making it more accessible to a wider audience. Undeniably, economics is a critically important subject because it is all about our welfare—at an individual level, nationally and internationally, and for our children and future generations. But it is also perceived by many to be an esoteric, technocratic subject. People without economics qualifications struggle to understand the key concepts. Behavioural economics has the potential to change this because it strikes many as being much more interesting. It provides a more intuitive and less mathematical account of our decision-making.

Behavioural economics is also interesting because of the pluralism and diversity in its underlying principles. Behavioural economists bring economics together with insights from a wide range of other disciplines, for example psychology (especially social psychology), sociology, neuroscience, and evolutionary biology. Using this multidisciplinary blend of ideas, behavioural economists enrich our understanding of economic and financial behaviour, without necessarily abandoning the analytical power often associated with conventional economics.