Behavioral Economics truly defines why economics is deemed a social science. Economics meets psychology: these studies combine to create a unified study of behaviors behind economic thought and decisions individuals make. Behavioral economics became popular in the late 70’s, where individuals such as Daniel Kahneman a Nobel Prize winner and Amos Tversky who worked closely with Kahneman, painted the world with possibilities and insights to the fairly new economic study of behavioral economics.
In modern day economics, other headliners like Uri Gneezy, John A. List, and several others have found their ways to the spotlight. Uri Gneezy in particular, emphasizes his work through field experiment to answer several economically based questions. …show more content…
Several thousand participants partook in the experiment unknowingly. The experiment is based on what is termed Pay What You Want, and in constructed so that participants are provided with a choice on how much to contribute toward the photo given at the end of the ride. Additionally, people were provided with a choice to purchase the picture at the price they wanted by way of: PWYW, $12.95, $12.95 and charity contribution, or PWYW plus charitable contribution. The results were bewildering, people paid more for the picture with the PWYW plus charity method. The writers explain that this demonstrates that people pay more when “the benefit outweighs the cost” (Gneezy A., Gneezy U., Nelson L. D., Brown, A. …show more content…
All three experiments prove that individuals care about social reflection. In other words, people will pay more if it will make them look better. No one wants to look like a scum bag.
Liar Liar Pants on Fire: The article Deception written by Uri Gneezy, encompasses the use of field studies this economist conducted. He attempts to point to prove that individuals will lie; however, people refrain from deceitful behavior if they are aware there will be a negative outcome for the other person. Further, his experiment proves that individual will typically act in their best interest and spurt an occasional white lie may insure better
In modern day economics, other headliners like Uri Gneezy, John A. List, and several others have found their ways to the spotlight. Uri Gneezy in particular, emphasizes his work through field experiment to answer several economically based questions. …show more content…
Several thousand participants partook in the experiment unknowingly. The experiment is based on what is termed Pay What You Want, and in constructed so that participants are provided with a choice on how much to contribute toward the photo given at the end of the ride. Additionally, people were provided with a choice to purchase the picture at the price they wanted by way of: PWYW, $12.95, $12.95 and charity contribution, or PWYW plus charitable contribution. The results were bewildering, people paid more for the picture with the PWYW plus charity method. The writers explain that this demonstrates that people pay more when “the benefit outweighs the cost” (Gneezy A., Gneezy U., Nelson L. D., Brown, A. …show more content…
All three experiments prove that individuals care about social reflection. In other words, people will pay more if it will make them look better. No one wants to look like a scum bag.
Liar Liar Pants on Fire: The article Deception written by Uri Gneezy, encompasses the use of field studies this economist conducted. He attempts to point to prove that individuals will lie; however, people refrain from deceitful behavior if they are aware there will be a negative outcome for the other person. Further, his experiment proves that individual will typically act in their best interest and spurt an occasional white lie may insure better