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Behavioural economics
A relatively recent field of economics founded on the notion that human behaviour is significantly more complex than the traditional assumptions of rational consumer choice.
Choice Architecture
The way in which options are showcased to decision-makers where there is emphasis on the design and environment to influence decisions.
Market share
The percentage of total sales in the market, which a firm is part of, that the firm generates.
Nudge
A method used to influence the decision of a consumer in a desirable way, without offering any financial incentives or imposing any legal regulations over them.
Profit as factor payment
Payments, per unit time, made to the owners of entrepreneurship (one of the factors of production)
Rational consumer choice
Economic theory where consumers make choices in their best self-interest trying to maximize utility.
Rational Producer Behaviour
The act of aiming to maximise profits. The goal of firms, according to the standard theory of the firm.