THE ROLE OF BEHAVIORAL ECONOMICS IN EXPLAINING CONSUMPTION DECISION
Journal Title: Challenges of the Knowledge Society - Year 2015, Vol 5, Issue 0
Abstract
The new economic approach starts from the idea that the individual does not need food, but feels the need to feed, or do not require newspapers, but feels the need of information. In this way, those who changes are not human preferences, but the way we satisfy them. At this stage of the paper, we explain the inconsistency in consumer preferences and the exceptions to the standard theory by making light upon what is called in behavioral economics: the effects of property, loss aversion and framing effects. In which concerns the standard economic model, it seems that there are discrepancies between objective measures of sources of comfort / discomfort and measures reported subjective sensations. Many defenders of classical model would argue that the measures are not reported subjective feelings of economic phenomena and therefore are not of interest to economists. However, when such feelings and sensations affect or may affect future decisions, things become relevant for the economy. Limited Rationality implies both that the agent is imperfectly informed decision-making in a complex and dynamic environment, and a limited ability processing.
Authors and Affiliations
Mihaela Andreea STROE
Keywords
Related Articles
- EP ID EP137916
- DOI -
- Views 121
- Downloads 0
LABOR MARKET POLICIES AND EFFECTIVENESS.
In this paper will be examined some important issues of the labor market policies in Albania. As well, the analysis of labor market institutions such as the Social Insurances or the Syndicates on the efficiency of employ...
ENVIRONMENTAL CONFLICT MEDIATION
At a time of global economic crisis followed by resource crisis, a period in which the world seeks alternative resources through eco-investment, environmental conflicts are inevitable. Romania is among the few countries...
IMPLICATIONS OF THE NEW LEGISLATION ON THE FUNDAMENTAL PRINCIPLES OF THE CRIMINAL TRIAL
Each type of criminal trial is construed, from a systemic and normative perspective, on a range of fundamental rules. The current pattern of criminal trial applied at national level since the implementation of the New C...
RELEVANT ISSUES CONCERNING THE RELOCATION OF CIVIL PROCEEDINGS UNDER THE NEW CODE OF CIVIL PROCEDURE (NCPC)
The change of the new code of civil procedure and obvious the entry of the new provisions at 15th February 2013, has been thought with the hope to accelerate the procedures related to judgement with a noticeable simplifi...
THE ROLE AND THE TECHNIQUES USED BY THE MEDIATOR IN THE MEDIATION PROCESS
The present work aims to emphasize the complexity of the mediator’s activity during the mediation process, as an extra – judicial alternative dispute resolution methodology. Different mediation schools have launched diff...