Behavioral economics

making when they participate in the financial market. This phenomenon gives a shock to rational assumptions related to the traditional economic theory. For figuring out the principles and motivations behind decision-making process, behavioral economics has been widely discussed more than ever. Endowment effect, as one of economic phenomenon, arises from economic activities affecting preference and value construction (Ariely and Norton, 2008; Willemsen et al.2011). This essay explains what the…

mode of trade evolves, so does the currencies which enable the trade. The nineteenth century economic system was built on slavery (Hogendorn 56). In this way, the number and the quality of slaves became a sign of wealth and on this inference; slaves became the currency at the time. The value of a slave was ascertained through the various qualities which were noted as physical qualities as well as behavioral qualities. Given the rampant use of slaves, the denotation of slaves became a currency…

The theory of the leisure class, which was proposed by Thorstein Veblen in 1899, rationalizes the evolutionary development of human institutions (social and economic) that forms society, such as how citizens earn their livelihoods, wherein technology and the industrial arts are the creative forces of economic production. The production of goods and services was not intended to merely reach the material needs of society, but to earn profits for the owners of this production. The industrial…

all the way back to 1850. The audience is not specific, but could be useful to anyone wanting to learn more about Cuba. The author starts the paper with overall history of Cuba, which is unimportant to me, but then goes into the government and economics of Cuba, which is very important. Cuba is a totalitarian state, who leader is Fidel Castro. He is the leader of everything and runs the country by himself. Cuba’s over government party is the communist party, which is Castro’s personal…

Charles Darwin’s way of thinking expanded far beyond his area of expertise, it expended all the way to psychology, physics, literature and even politics and economics. If you asked him “How much of his work would impact other fields?” personally I do not think he would have known. Darwinian thinking is now deeply engraved in areas such as economics and even business administration. Through this paper I will attempt to see how Darwin interacted with economists of his time such as Karl Marx, how…

connection is feasible through the use of rhetorical questions, juxtaposition, anecdotes, and an inquisitive tone. In order to prove that incentives- “the cornerstone[s] of modern life” (13)- and behavioral patterns in society affect the economy, Levitt and Dubner present a wide variety of economic topics and issues and connect all those subjects back to the single cause of human motives. The authors of Freakonomics are able to create the connection between incentives and the economy through…

1776 (2). Primarily because of The Wealth of Nations, he is one of the best known economists in the world and much of his work was based on how psychology affects economics, which was much of the focus of The Theory of Moral Sentiments (3). Because of this, his work is sometimes considered a precursor to modern day behavioral economics (4). Additionally, in the Enlightenment period, he was considered a progressive; his political views most closely align with those of contemporary libertarians…

the main concern of Fred Bateman and Thomas Weiss’ 1981 book, A Deplorable Scarcity: The Failure of Industrialization in the Slave Economy. Drawing from census information gathered in the 1850s and 1860s, they attempt to reason an explanation via economic analysis for why the South fell behind the North in industrialization as well as many other qualitative measures such as literacy, immigration and educational infrastructure. I believe that it is necessary to discuss these failings…

Agreement, as much as is possible within such a broad subject, regarding the definition of the study of economics could be summed up as “the study of the use of limited resources to fulfill unlimited wants.” Of course, this definition comes attached to a myriad of assumptions and ideologies; furthermore, it can lead those in the profession who are more inclined to consider the complicated nature of human social relations dissatisfied with such a sterile and simplistic outlook. James Angresano…

from a variety of sources. He includes information from his interview with Rebecca Paul Hargrove, information and data from experiments and studies, and quotes from his interviews with university professors who study behavioral science (decision making), social psychology, and economics.…