Relationship between economics and psychology in the context of behavioral economics

Psychology is a science that studies behaviors and mental processes. The science of economics is concerned with how resources are distributed among economic actors such as consumers, firms and markets. In the joint study of economics and psychology sciences include observing economic behaviors, creating generalizations based on observations and testing hypotheses. Over the years, leading researches in both economics and psychology have criticized that some of the principles of mainstream economics don't find realistic as psychologically and should be presented with alternative assumptions that they believe it will improve ecenomic analysis. In this context, with the inclusion of psychology in the economy especially in recent years, causal connections can be established to enable a better analysis of economics events. Key Words: psychology, economic psychology, behavioral economics, rationality