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Behavioral economics is the study of the psychological, cognitive, emotional, cultural and social factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by classical economic theory. [1] [2] Behavioral economics is primarily concerned with the bounds of rationality of economic agents.
Social exchange theory is a sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. The theory also involves economic relationships—the cost-benefit analysis occurs when each party has goods that the other parties value. [1]
Mental accounting incorporates the economic concepts of prospect theory and transactional utility theory to evaluate how people create distinctions between their financial resources in the form of mental accounts, which in turn impacts the buyer decision process and reaction to economic outcomes. [3] People are presumed to make mental accounts ...
Nudge theory is a concept in behavioral economics, decision making, behavioral policy, social psychology, consumer behavior, and related behavioral sciences that proposes adaptive designs of the decision environment (choice architecture) as ways to influence the behavior and decision-making of groups or individuals
Neuroeconomics. Neuroeconomics is an interdisciplinary field that seeks to explain human decision-making, the ability to process multiple alternatives and to follow through on a plan of action. It studies how economic behavior can shape our understanding of the brain, and how neuroscientific discoveries can guide models of economics.
At the time Thaler's conceptualisation of the endowment effect was in direct contrast to that of accepted economic theory, which assumed humans were completely rational when making decisions. Through his contrasting viewpoint, Thaler was able to offer a clearer understanding of how humans make economic decisions.
Psychophysiological economics is a field of study focused on the assessment and evaluation of psychological and physiological events as factors shaping consumer economic behavior. [1] Psychophysiological economists believe that behavior and cognitive processing are indivisible and that behavioral, cognitive, and physiological tools and ...
Journal of Economic Psychology. The Journal of Economic Psychology is a bimonthly peer-reviewed academic journal covering behavioral economics. It was founded by Willem Frederik (Fred) van Raaij in 1981 and is published by Elsevier on behalf of the International Association for Research in Economic Psychology, of which it is the official journal.