Why are some people more likely to expose themselves to risk than others? Why are some people completely risk-adverse? How does the average person behave in response to risk - and why?
Cognitive bias causes us to routinely deviate from rational judgment, and to make inferences about other people and situations illogically.
A good example in the workplace is when you receive recognition, or an award, and you assume that your colleagues are all as happy for your success as you are; it makes us hurt and frustrated when we find out that this is not necessarily the case.
The study of human behaviour, which has traditionally come under the umbrella of psychology, would seem to have little relationship with economics.
But, as we learn more about how the brain works through the dual disciplines of neuroscience and psychology, there is an increasing marriage with the field of economics, in order to better understand how people make financial decisions.