when a decision made leads to error heuristics can lead to cognitive bias behavioral game theory an emergent class of game theory can also be applied to behavioral economics as game theory runs experiments and analyzes people s decisions to make irrational choices this concept attempts to override illogical behavior to predict consumption outcomes 
companies are increasingly incorporating behavioral economics to increase sales of their products in 2007 the price of the 8gb iphone was introduced for 600 and quickly reduced to 400 by introducing the phone at a higher price and bringing it down to 400 consumers believed they were getting a pretty good deal even if the true value of the product was only 400 consider a soap manufacturer who produces the same soap but markets them in two different packages to appeal to multiple target groups one package advertises the soap for all soap users the other for consumers with sensitive skin the latter target would not have purchased the product if the package did not specify that the soap was for sensitive skin they opt for the soap with the sensitive skin label even though it s the exact same product in the general package 