What is Behavioural Economics

The key premise of economics, which views people as utilitarian individuals who make completely rational economic decisions, has influenced other disciplines as Strategy. However, the developments in behavioural neuroscience have opened a major understanding of the mental processes that explain managers's behaviour and effectiveness.This article presents a review of the contributions from behavioural neuroscience to the study of managerial decision-making and offers a critical evaluation of its implications for management and organization studies, especially in the field of strategy. The paper reviews the most recent literature on neurostrategy and maps out the main strands of the debate and their implications for understanding the behaviour of strategy-makers. The study of neuronal and psicological foundations for strategy-makers behaviours and decision-making has identified the problems of the general model of the rational problem-solving process in information, perception, and selection of strategies, and how behavioural strategy can help us to identify them and prevent them.