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Behavioral Economics
Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals or institutions, such as how those decisions vary from those implied by classical economic theory. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory. The study of behavioral economics includes how market decisions are made and the mechanisms that drive public opinion. The concepts used in behavioral economics today can be traced back to 18th-century economists, such as Adam Smith, who deliberated how the economic behavior of individuals could be influenced by their desires. The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century. Behavio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Nudge
Nudge or Nudging may refer to: Arts * Nudge (band), an American electronic rock band * Nudge, a List of characters in Maximum Ride#Nudge, character from the Maximum Ride series by James Patterson * "Nudge Nudge", a sketch from the third ''Monty Python's Flying Circus'' * Gerald "Nudge" Noritis, a character from the Australian sitcom ''Hey Dad..!'' Psychology * Nudge (book), ''Nudge'' (book), a book on choice architecture by Richard Thaler and Cass R. Sunstein ** Nudge theory, a psychological theory on influencing individuals and groups to take action without force Science and technology * Nudge (instant messaging), an attention-getting feature in instant messaging software * Nudging, a data assimilation method also known as Newtonian relaxation Model railways * Nudging, a discrete push or prod which brings station canopies and other railway structures out of alignment. Originally used to describe an unintentional action, now also describes intentional covert action. Other * ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Francis Edgeworth
Francis Ysidro Edgeworth (8 February 1845 – 13 February 1926) was an Anglo-Irish philosopher and political economist who made significant contributions to the methods of statistics during the 1880s. From 1891 onward, he was appointed the founding editor of ''The Economic Journal''. Life Ysidro Francis Edgeworth- the order of his forenames later reversed- was born in Edgeworthstown, County Longford, Ireland, son of Francis Beaufort Edgeworth and his wife, Rosa Florentina, daughter of Catalan general Antonio Eroles. Francis Beaufort Edgeworth, when "a restless philosophy student at Cambridge on his way to Germany", had met Rosa, a teenage Spanish refugee, on the steps of the British Museum, and they subsequently eloped. Francis Beaufort Edgeworth was son of the politician, writer, and inventor Richard Lovell Edgeworth (father also of the writer Maria Edgeworth), by his fourth wife, the botanical artist and memoirist Frances Anne, daughter of the Anglican clergyman and geog ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Discounted Utility
In economics, discounted utility is the utility (desirability) of some future event, such as consuming a certain amount of a good, as perceived at the present time as opposed to at the time of its occurrence. It is calculated as the present discounted value of future utility, and for people with time preference for sooner rather than later gratification, it is less than the future utility. The utility of an event ''x'' occurring at future time ''t'' under utility function ''u'', discounted back to the present (time 0) using discount factor \beta, Is :\beta ^t u(x_t). Since more distant events are less liked, 0 < \beta < 1. Discounted utility calculations made for events at various points in the future as well as at the present take the form : where is the utility of some choice at time and ''T'' is the time of the most distant future satisfaction event. Here, since utility comparis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Expected Utility Hypothesis
The expected utility hypothesis is a popular concept in economics that serves as a reference guide for decisions when the payoff is uncertain. The theory recommends which option rational individuals should choose in a complex situation, based on their risk appetite and Preference, preferences. The expected utility hypothesis states an agent chooses between risky prospects by comparing expected utility values (i.e. the weighted sum of adding the respective utility values of payoffs multiplied by their probabilities). The summarised formula for expected utility is U(p)=\sum u(x_k)p_k where p_k is the probability that outcome indexed by k with payoff x_k is realized, and function ''u'' expresses the utility of each respective payoff. On a graph, the curvature of u will explain the agent's risk attitude. For example, if an agent derives 0 utils from 0 apples, 2 utils from one apple, and 3 utils from two apples, their expected utility for a 50–50 gamble between zero apples and two is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Daniel Kahneman
Daniel Kahneman (; he, דניאל כהנמן; born March 5, 1934) is an Israeli-American psychologist and economist notable for his work on the psychology of judgment and decision-making, as well as behavioral economics, for which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences (shared with Vernon L. Smith). His empirical findings challenge the assumption of human rationality prevailing in modern economic theory. With Amos Tversky and others, Kahneman established a cognitive basis for common human errors that arise from heuristics and biases, and developed prospect theory. In 2011 he was named by '' Foreign Policy'' magazine in its list of top global thinkers. In the same year his book ''Thinking, Fast and Slow'', which summarizes much of his research, was published and became a best seller. In 2015, ''The Economist'' listed him as the seventh most influential economist in the world. He is professor emeritus of psychology and public affairs at Princeton U ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Amos Tversky
Amos Nathan Tversky ( he, עמוס טברסקי; March 16, 1937 – June 2, 1996) was an Israeli cognitive and mathematical psychologist and a key figure in the discovery of systematic human cognitive bias and handling of risk. Much of his early work concerned the foundations of measurement. He was co-author of a three-volume treatise, ''Foundations of Measurement''. His early work with Daniel Kahneman focused on the psychology of prediction and probability judgment; later they worked together to develop prospect theory, which aims to explain irrational human economic choices and is considered one of the seminal works of behavioral economics. Six years after Tversky's death, Kahneman received the 2002 Nobel Memorial Prize in Economic Sciences for the work he did in collaboration with Amos Tversky. (The prize is not awarded posthumously.) Kahneman told ''The New York Times'' in an interview soon after receiving the honor: "I feel it is a joint prize. We were twinned for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Behaviorism
Behaviorism is a systematic approach to understanding the behavior of humans and animals. It assumes that behavior is either a reflex evoked by the pairing of certain antecedent (behavioral psychology), antecedent stimuli in the environment, or a consequence of that individual's history, including especially reinforcement (psychology), reinforcement and punishment (psychology), punishment three-term contingency, contingencies, together with the individual's current motivating operation, motivational state and Stimulus control, controlling stimuli. Although behaviorists generally accept the important role of heredity in determining behavior, they focus primarily on environmental events. Behaviorism emerged in the early 1900s as a reaction to depth psychology and other traditional forms of psychology, which often had difficulty making predictions that could be tested experimentally, but derived from earlier research in the late nineteenth century, such as when Edward Thorndike p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cognitive Psychology
Cognitive psychology is the scientific study of mental processes such as attention, language use, memory, perception, problem solving, creativity, and reasoning. Cognitive psychology originated in the 1960s in a break from behaviorism, which held from the 1920s to 1950s that unobservable mental processes were outside the realm of empirical science. This break came as researchers in linguistics and cybernetics, as well as applied psychology, used models of mental processing to explain human behavior. Work derived from cognitive psychology was integrated into other branches of psychology and various other modern disciplines like cognitive science, linguistics, and economics. The domain of cognitive psychology overlaps with that of cognitive science, which takes a more interdisciplinary approach and includes studies of non-human subjects and artificial intelligence. History Philosophically, ruminations on the human mind and its processes have been around since the times of the a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cognitive Revolution
The cognitive revolution was an intellectual movement that began in the 1950s as an interdisciplinary study of the mind and its processes. It later became known collectively as cognitive science. The relevant areas of interchange were between the fields of psychology, linguistics, computer science, anthropology, neuroscience, and philosophy. The approaches used were developed within the then-nascent fields of artificial intelligence, computer science, and neuroscience. In the 1960s, the Harvard Center for Cognitive Studies and the Center for Human Information Processing at the University of California San Diego were influential in developing the academic study of cognitive science. By the early 1970s, the cognitive movement had surpassed behaviorism as a psychological paradigm. Furthermore, by the early 1980s the cognitive approach had become the dominant line of research inquiry across most branches in the field of psychology. A key goal of early cognitive psychology was to ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Homo Economicus
The term ''Homo economicus'', or economic man, is the portrayal of humans as agents who are consistently rational and narrowly self-interested, and who pursue their subjectively defined ends optimally. It is a word play on ''Homo sapiens'', used in some economic theories and in pedagogy. In game theory, ''Homo economicus'' is often modelled through the assumption of perfect rationality. It assumes that agents always act in a way that maximize utility as a consumer and profit as a producer, and are capable of arbitrarily complex deductions towards that end. They will always be capable of thinking through all possible outcomes and choosing that course of action which will result in the best possible result. The rationality implied in ''Homo economicus'' does not restrict what sort of preferences are admissible. Only naive applications of the ''Homo economicus'' model assume that agents know what is best for their long-term physical and mental health. For example, an agent's u ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Positivism
Positivism is an empiricist philosophical theory that holds that all genuine knowledge is either true by definition or positive—meaning ''a posteriori'' facts derived by reason and logic from sensory experience.John J. Macionis, Linda M. Gerber, ''Sociology'', Seventh Canadian Edition, Pearson Canada Other ways of knowing, such as theology, metaphysics, intuition, or introspection, are rejected or considered meaningless. Although the positivist approach has been a recurrent theme in the history of western thought, modern positivism was first articulated in the early 19th century by Auguste Comte.. His school of sociological positivism holds that society, like the physical world, operates according to general laws. After Comte, positivist schools arose in logic, psychology, economics, historiography, and other fields of thought. Generally, positivists attempted to introduce scientific methods to their respective fields. Since the turn of the 20th century, positivism has de ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply And Demand
In microeconomics, supply and demand is an economic model of price determination in a Market (economics), market. It postulates that, Ceteris paribus, holding all else equal, in a perfect competition, competitive market, the unit price for a particular Good (economics), good, or other traded item such as Labour supply, labor or Market liquidity, liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted. The concept of supply and demand forms the theoretical basis of modern economics. In macroeconomics, as well, the AD–AS model, aggregate demand-aggregate supply model has been used to depict how the quantity of real GDP, total output and the aggregate price level may be determined in equilibrium. Graphical representations Supply schedule A supply schedule, depicted graphically as a supply cu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
