Behavioural decision theory is a fascinating field of research that deals with people's behaviour when making decisions. It assumes that decisions are not always made rationally and according to classical economic theory. Instead, it emphasises the role of psychological, social and emotional factors in decision-making.

A core aspect of behavioural decision theory is the realisation that people often use heuristics, i.e. rules of thumb or mental shortcuts, to make complex decisions. These heuristics simplify the decision-making process, but can also lead to systematic errors or distortions, so-called cognitive biases.

A typical example of such a cognitive bias is the confirmation bias, where people tend to seek, interpret and remember information that confirms their existing beliefs or hypotheses. Another example is the availability heuristic, where decisions are based on the ease with which similar cases or scenarios can be recalled in memory.

Behavioural decision theory has important implications for a variety of fields, including economics, marketing, politics and personal financial management. In marketing, for example, understanding the decision-making processes of consumers helps to develop more effective advertising strategies. In finance, a deeper understanding of behavioural decision theory can help explain the causes of irrational market phenomena and develop better investment strategies.

Another important aspect is the application of behavioural decision theory in politics and public administration. It offers insights into the behaviour of voters and can be used to make political campaigns and public policy more effective.

In summary, behavioural decision theory offers a deep insight into the complexity of human decision-making processes. It shows that decisions are often influenced by a variety of factors that go beyond pure logic and rationality. By focussing on the role of emotions, social influences and cognitive biases, it expands our understanding of how people make decisions.