Behavioral Economics: Difference between revisions
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<center> Economics traditionally conceptualizes the world according to the assumption that the entire population is comprised of equally informed, educated, and equity maximizing individuals (Homo Economicus). It is argued that behavioral and psychological insights could improve the understanding of economic decisions by: 1. Identifying way in which behavior differs from the standard Homo Economicus model, and 2. showing how this behavior manifests itself in economic terms (Mullainathan and Thaler 2) </center> | <center> Economics traditionally conceptualizes the world according to the assumption that the entire population is comprised of equally informed, educated, and equity maximizing individuals (Homo Economicus). It is argued that behavioral and psychological insights could improve the understanding of economic decisions by: 1. Identifying way in which behavior differs from the standard Homo Economicus model, and 2. showing how this behavior manifests itself in economic terms (Mullainathan and Thaler 2) </center> | ||
[[Image:Behavioraleconomicshomepage.gif]] | <center> [[Image:Behavioraleconomicshomepage.gif]] </center> | ||
<center> This chart shows word counts using Lexis Nexis of the terms "behavioral finance" and "efficient markets" by year in General News, Major Papers, Full Text, scaled by an estimate of the number of words of text on Lexis-Nexis for the year. The chart shows that "behavioral finance" has been growing exponentially starting from several years after we began our workshop series, while "efficient markets" has been declining. The chart is dramatic evidence that behavioral finance has been gaining in the marketplace for ideas. </center> | <center> This chart shows word counts using Lexis Nexis of the terms "behavioral finance" and "efficient markets" by year in General News, Major Papers, Full Text, scaled by an estimate of the number of words of text on Lexis-Nexis for the year. The chart shows that "behavioral finance" has been growing exponentially starting from several years after we began our workshop series, while "efficient markets" has been declining. The chart is dramatic evidence that behavioral finance has been gaining in the marketplace for ideas. </center> | ||
Revision as of 02:03, 3 May 2007
Behavioral Economics
Overview
