What Is The Empathy Gap In Behavioral Economics?

The empathy gap is a term used to describe the tendency for people to underestimate the influence of emotions on their own and others’ decision-making. This can lead to poor decision-making, as people may not take into account the emotional states of themselves and others when making choices. The empathy gap is often explained in terms of two systems in the brain: the emotional system, which is responsible for processing and experiencing emotions, and the cognitive system, which is responsible for logical reasoning and decision-making. The empathy gap occurs when the cognitive system overrides the emotional system, causing people to underestimate the impact of emotions on their choices. To avoid the empathy gap, it is important to recognize and consider the emotional states of oneself and others when making decisions.

Related Behavioral Economics Terms