Behavioural economics, economics, Microeconomics

An economics branch which keep concentrate on illumination the economic decisions people make in practice, particularly when these conflict with what conventional economic theory predicts they can do. Behaviorists try to expand or swap usual ideas of economic rationality with decision-making models borrowed from psychology. According to psychologist’s aspects, the people are excessively influenced by a fear of feeling regret & will often forgo benefits even to avoid only a small risk of feeling they have failed. They are also prone to cognitive dissonance, often holding on to a belief plainly at odds with new evidence, usually because the belief has been held & cherished for a long time. Then there is anchoring, the people are often overly influenced by outside suggestion. People apparently also suffer from status quo bias, they are willing to take bigger gambles to maintain the status quo than they would be to acquire it in the first place.
Posted Date: 2/4/2012 12:01:49 AM | Location : United States







Related Discussions:- Behavioural economics, economics, Assignment Help, Ask Question on Behavioural economics, economics, Get Answer, Expert's Help, Behavioural economics, economics Discussions

Write discussion on Behavioural economics, economics
Your posts are moderated
Related Questions
Ask quAsk qIf the supply and demand curves for labor are represented by the following equations: Wd= -- (1/100)Ld + 30 Ws= (1/200)Ls Ws=Wd Ld=Ld a. Graph the results and show the

in economics what is cobb douglas theory?

Q. What is Unit Labour Cost? Unit Labour Cost: How much an employer pays for labour needed to produce each unit of a good or service. Unit labour cost can be computed by dividi

why s-block elements are powerful reducing agent?

Law of mass action states that at a constant temperature rate of a chemical reaction is directly proportional to product of active masses of the reactants raised to the power equal

Explain externality, how can government intervene to achieve allocative efficiency in case of external cost or external benefit? Answer The term externalities refers to bot

Do the laws of economics still work today? use the case discussed in class to answer this question or any other examples) (ii) Provide examples of three factors that can shift the

how does the charging the monoply a specific tax per unit affect the monopoly optmum and 5the welfare of consumer

Q. Explain Function of Central Bank? Central Bank: A public financial institution, generally established at the national level and controlled by a national government that sets

A firm has a short-run production function defined by:  Q = -. 02L 2 + 8L What  is  the short  run demand curve  for  labour  (L) in terms of  the market wage  rate  (w), if