An examination on the hidden traps in the decision making process of individuals

The behavioral economics approach argues that the notion of rationality, which is an important assumption of mainstream economics, is not always valid. As a result of the developments in psychology in the mid-twentieth century, the reasons that prevent individuals from exhibiting rational behavior began to be investigated. At the end of these researches, it was understood that individuals fell into some hidden traps and therefore determined from rationality when they had to make a quick decision.In addition, when individuals need to make decisions under uncertainty and risk, they move away from rationality. The developments in the behavioral economics approach are followed by the academic circles and attract the attention of the state administrators. It is seen that states have established units in order to use behavioral elements in public policy production processes. In this thesis, the emergence of behavioral economics and its development process are firstly discussed.The second is given as examples in the world of behavioral and public policies applied in Turkey. In the third section, the hidden pitfalls that exclude individuals from rationality in the decision-making process are explained. In the last section; as a result of the face-to-face survey, the pitfalls that prevent rationality in individuals' decision- making process are analyzed. In conclusion; it is determined that individuals deviation from rationality because they have trapped in feeding, ownership, anchoring, mental accounting and hyperbolic reduction traps.