Behavioral Economics


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Behavioral Economics

A theory of economics that 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 economics' primary observations holds that investors and people in genera 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 economics holds 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.
References in periodicals archive ?
Therefore, we have to seize the opportunity provided to us by the financial inclusion initiative, along with seeking assistance from the principles and strategies of behavioral economics in order to conduct surveys, sectoral studies, descriptive studies, induction studies, and predictive studies that could be characterized with depth and extensiveness.
Topics range from social cognition and person perception to group processes and intimate relationships, with applied mini-chapters on the social psychology of a sustainable environment, law and the courtroom, stress and health, positive psychology, behavioral economics, relationship violence, industrial and organizational psychology, and volunteerism and internships.
Behavioral economics company Evive reported on Thursday the receipt of USD43m in minority-interest investment from Susquehanna Growth Equity LLC (SGE).
Michelle Oberman's Her Body, Our Laws approaches abortion restrictions through the lens of behavioral economics, comparing the practical effects of abortion laws in El Salvador and in Oklahoma against their stated goals.
the insurance company powered by artificial intelligence and behavioral economics, has announced the signing of a USD 120 million Series C funding round led by the SoftBank Group, with participation from existing investors, the company said.
Richard Thaler of the University of Chicago's Booth School of Business, an NBER research associate for more than 25 years, was awarded the 2017 Nobel Prize in Economic Sciences for his research in behavioral economics.
About HealthPrize Technologies: HealthPrize Technologies enables life science companies to engage and motivate their customers using gamification, education, behavioral economics and incentives.
Based on math, game theory and behavioral economics principles, it uses graphical shapes and decision-making choices to reveal a unique "economic fingerprint.
Wright is an executive director at Ideas42, a design and research lab that uses behavioral economics to address social problems.
Thaler is known for his lifelong pursuit of behavioral economics (and its subfield, behavioral finance), which is the study of economics (and finance) from a psychological perspective.
The Nobel committee said as a pioneer in behavioral economics, Thaler has built a bridge between economics and psychology to show a "more realistic analysis of how people think and behave when making economic decisions.
I try to be at the forefront of appraisal technology, but after reading Misbehaving: The Making of Behavioral Economics I feel like I have been asleep at the wheel when it comes to economic theory.

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