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Truth is in favor of you and me; for the truth of our enemies whom we have been serving here in the U.S.A. for over 400 years (whom we did not know to be our enemies by nature) is the truth that the Black Man must have knowledge of to be able to keep from falling into the deceiving traps that are being laid by our enemies to catch us in their way which is opposed to the way of righteous of whom we are members. ~ The Honorable Elijah Muhammad

Monday, February 22, 2016

The Business Of Behavioral Economics: How your thoughts are being influenced to buy, buy, buy

Behavioral economics - Wikipedia, the free encyclopedia
Behavioral economics, along with the related sub-field, behavioral finance, studies the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and the resource allocation.[1] Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory; in so doing, these behavioral models cover a range of concepts, methods, and fields.[2][3] Behavioral economics is sometimes discussed as an alternative to neoclassical economics.[citation needed]
The study of behavioral economics includes how market decisions are made and the mechanisms that drive public choice. The use of "Behavioral economics" in U.S. scholarly papers has increased in the past few years as a recent study shows.[4]
There are three prevalent themes in behavioral finances:[5]
Behavioral Economics: The Concise Encyclopedia of Economics | Library of Economics and Liberty
All of economics is meant to be about people’s behavior. So, what is behavioral economics, and how does it differ from the rest of economics?
Economics traditionally conceptualizes a world populated by calculating, unemotional maximizers that have been dubbed Homo economicus. The standard economic framework ignores or rules out virtually all the behavior studied by cognitive and social psychologists. This “unbehavioral” economic agent was once defended on numerous grounds: some claimed that the model was “right”; most others simply argued that the standard model was easier to formalize and practically more relevant. Behavioral economics blossomed from the realization that neither point of view was correct.
The standard economic model of human behavior includes three unrealistic traits—unbounded rationality, unbounded willpower, and unbounded selfishness—all of which behavioral economics modifies.
The Business Of Behavioral Economics - Forbes
You’ve done everything—endured diets, purged your freezer of Ben & Jerry’s, and educated yourself on fat, sugar, and calories. Yet, you can’t manage to lose weight.
What’s wrong with you? According to standard economic theory, which gives humans (perhaps too much) credit for making rational choices, those efforts should be enough to change your behavior. If you know the consequences but still get fat, you must want to be overweight.
Of course not, say Leslie John and Michael Norton, professors at Harvard Business School specializing in the burgeoning field of behavioral economics. “Standard economic theory suggests that as long as people understand the full consequences of their actions, they tend to act in their self interest,” says John. “If they want to be healthy, and you tell them how many calories are in a burger, then they’ll eat better.” But behavioral economics suggests that people make mistakes in their thinking. For example, we have self-control problems that can lead us to knowingly “misbehave.”
Such biases are the bread and butter of behavioral economics, and have been accepted into the mainstream of economics and pop culture, particularly since the recent publication of popular books such as Richard Thaler and Cass Sunstein’s Nudge, Dan Ariely’s Predictably Irrational, and Daniel Kahneman’s Thinking, Fast and Slow.
The Business Of Behavioral Economics - Forbes
You’ve done everything—endured diets, purged your freezer of Ben & Jerry’s, and educated yourself on fat, sugar, and calories. Yet, you can’t manage to lose weight.
What’s wrong with you? According to standard economic theory, which gives humans (perhaps too much) credit for making rational choices, those efforts should be enough to change your behavior. If you know the consequences but still get fat, you must want to be overweight.
Of course not, say Leslie John and Michael Norton, professors at Harvard Business School specializing in the burgeoning field of behavioral economics. “Standard economic theory suggests that as long as people understand the full consequences of their actions, they tend to act in their self interest,” says John. “If they want to be healthy, and you tell them how many calories are in a burger, then they’ll eat better.” But behavioral economics suggests that people make mistakes in their thinking. For example, we have self-control problems that can lead us to knowingly “misbehave.”
Such biases are the bread and butter of behavioral economics, and have been accepted into the mainstream of economics and pop culture, particularly since the recent publication of popular books such as Richard Thaler and Cass Sunstein’s Nudge, Dan Ariely’s Predictably Irrational, and Daniel Kahneman’s Thinking, Fast and Slow.

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