Behavioral Economist

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Behavioral Economist

A theorist who attempts to explain economic participants' decisions as those of rational actors looking out for their self-interest given the sometimes inefficient nature of the market. Tracing its origins to Adam Smith's The Theory of Moral Sentiments, one of behavioral economists' primary observations holds that investors and people in general make decisions on imprecise impressions and beliefs rather than rational analysis. A second observation states that the way a question or problem is framed to an investor will influence the decision he/she ultimately makes. These two observations largely explain market inefficiencies; that is, behavioral economists hold that markets are sometimes inefficient because people are not mathematical equations. Behavioral economics stands in stark contrast to the efficient markets theory. See also: Naive diversification, Formula plan, Subjective probabilities.
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Behavioral economists have long recognised that investor perceptions affect financial markets in predictable ways.
DALLAS, May 15, 2015 /PRNewswire/ -- As the federal government and behavioral economists zero in on smoking cessation in light of growing usage and health concerns, a recent HealthMine survey of 750 wellness program participants indicates that only 37% say smoking cessation programs are included in their plan.
However, many behavioral economists believe that undesired weight gain is the result of unconscious and irrational decisions that result from psychological, social, cognitive, and emotional factors.
While the prevailing classical economics mindset puts reason at the center of people's fiscal actions, behavioral economists believe that rational considerations actually account for less than one-third of human decisions and behaviors.
Matching the timing of estimated payments with the inflow of taxpayer funds could be the key to helping clients meet this challenge, according to "mental accounting" academics and behavioral economists.
Greenspan, like many behavioral economists, is quick to blame market actors for irrational choices rather than asking whether policy makers have distorted signals or incentives in ways that lead rational actors to bad outcomes.
Behavioral economists are learning more about the choices people make at the individual level.
Working with law school researchers at Fordham and Stanford universities, computer scientists and behavioral economists at Carnegie Mellon will teach computer systems how to read and evaluate the lengthy, often-confusing and subject-to-change privacy policies now posted by major websites.
As we learning from the work of neuroscientists, psychologists, behavioral economists, and others, humans--even humans with PhDs--reach decisions by various routes.
Behavioral economists have emphasized that in important contexts,
To some behavioral economists, a division of labor is suggested by the fact that matching has generally been the province of psychologists rather than economists.
These and related issues--intertemporal choice (more on this later), emotional biases in decision-making, human motivation and irrationality--are also concerns for behavioral economists.

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