Posts Tagged ‘Behavioral Economics’
Cognitive Biases and Rational Behavior
By Dr. Hassan Shirvani—As you might have heard, the 2017 Nobel Prize in Economics was awarded to Richard Thaler for his pioneering work in the field of behavioral economics, a school of thought dedicated to the application of psychology to economics. The main point of this school is that humans are subject to too many…
Read MorePsychology and Economics
By Dr. Hassan Shirvani—Among the collateral damages of the recent global economic crisis has been the reputation of the economics profession whose members famously failed to anticipate the financial tsunami that rocked the world. Enmeshed in their complex mathematical models with their highly unrealistic assumptions, most economists were seemingly as stunned by the suddenness and the severity of the economic downturn as the average person on the street. Even Queen Elizabeth of England, on…
Read MoreSay Goodbye to “Homo economicus”: The New Science of Behavioral Economics
By Dr. Roger Morefield — HOMO ECONOMICUS AND PARADIGM SHIFT In his 1962 book, The Structure of Scientific Revolutions, Thomas Kuhn described the process of what he called “paradigm shift,” which is a change in the basic assumptions underlying a science. Recent advances in the theory of consumer behavior have allowed the new science…
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