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Contribution of behavioral economics to the

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Issue:

Business

 

Written by:

George R

 

Date added:

December 3, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 815

 

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9088 times

 

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Essay content:

New better models that incorporate links between economics, sociology, and psychology have been developed in order to better understand consumer choice. One of these models are aptly named "Behavioral Economics," as it attempts to provide better understanding of economic decisions by applying psychological principles of individual behavior to economics...
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Though it may not provide all the solutions to all economic phenomena, it provides more insight to the relationship between income, happiness, and the reasons behinds an individual's economic decision. Behavioral Economics is defined as the "combination of psychology and economics that investigates what happens in markets in which some of the agents display human limitations and complications" (Mullainathan n...
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