The psychology behind irrational decisions | Sara Garofalo | TED-Ed Animation

The TED-Ed animation “The psychology behind irrational decisions” helps explain why people often make decisions that are not “rational” from a purely economical point of view — in this case, rational meaning that they don’t necessarily lead to the best result. Why is that? Educator Sara Garofalo explains loss aversion and heuristics, which are approaches to problem solving that are based on previous experience and intuition rather than analysis, while also discussing the benefits and downsides these approaches have on society. This video gives viewers a chance to learn more about accountability in economic decision-making and how to develop greater mental agility when it comes to making decisions.