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What is the descriptive theory of choice developed to describe deviations from normative choice behavior?

1) Prospect theory
2) Rational choice theory
3) Behavioral economics
4) Game theory

1 Answer

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Final answer:

Behavioral economics is the descriptive theory of choice developed to describe deviations from normative choice behavior by taking into account people's state of mind and feelings that influence decision-making.

Step-by-step explanation:

The descriptive theory of choice developed to describe deviations from normative choice behavior is Behavioral economics. Behavioral economics is an alternative framework for consumer choice that takes into account people's state of mind and feelings, which can influence their decision-making. It seeks to explain behavior that traditional consumer theory considers irrational by identifying deeper underlying reasons for such behavior.

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