Behavioral economics: application of the methods of cognitive psychology in economics

 
PIIS086904990011552-9-1
Publication type Article
Status Published
Authors
Occupation: Research Fellow
Affiliation:
MSU
New School for Social Research
Russian Presidential Academy of National Economy and Public Administration
Address: Prospekt Vernadskogo str., 82–84, Moscow, Russia, 119571
Journal nameObshchestvennye nauki i sovremennost
EditionIssue 2
Pages132-141
Abstract

Behavioral economic theory is based on the revealed through experiments deviations in the behavior of people from the one assumed by the neoclassical economic theory. These deviations are defined as cognitive biases. At present behavioral economics does not offer a way to model the behavior of economic agents taking into account cognitive biases. This work describes one of the possible approaches to modeling preferences that does not imply neoclassical assumptions about their characteristics. The main idea of this approach is to model preferences as a result of memory. Also the decision making process on the basis of conscious and unconscious information processing is analyzed in the context of the rationality assumption of the neoclassical theory.

Keywordsbehavioral economics, experiment, cognitive biases, decision making process, preferences, rationality, memory, conscious, unconscious
Received15.09.2020
Publication date10.04.2017
Number of characters944
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