write reflective journal on the school of thought Behavioural Economics RMIT Classification: Trusted Behavioural Economics Behavioral economics

write reflective journal on the school of thought "Behavioural Economics" 

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RMIT Classification: Trusted Behavioural Economics Behavioral economics is grounded in empirical observations of human behavior, which have demonstrated that people do not always make what neoclassical economists consider the "rational" or "optimal" decision, even if they have the information and the tools available to do SO. For example, why do people often avoid or delay investing in 401ks or exercising, even if they know that doing those things would benefit them? And why do gamblers often risk more after both winning and losing, even though the odds remain the same, regardless of "streaks"? By asking questions like these and identifying answers through experiments, the field of behavioral economics considers people as human beings who are subject to emotion and impulsivity, and who are influenced by their environments and circumstances. This characterization draws a contrast to traditional economic models that have treated people as purely rational actors who have perfect self-control and never lose sight of their long-term goals-or as people who occasionally make random errors that cancel out in the long run. Behavioral economics research have helped economists better understand human economic behavior. From these principles, Daniel Kahneman No... Amos Tversky See Summary - Kahneman : Advanced information on the Prize in Economic Sciences 2002 (nobelprize.org) https:/ advanc RMIT Classification: Trusted Behavioural Economics Behavioral economics is grounded in empirical observations of human behavior, which have demonstrated that people do not always make what neoclassical economists consider the "rational" or "optimal" decision, even if they have the information and the tools available to do SO. For example, why do people often avoid or delay investing in 401ks or exercising, even if they know that doing those things would benefit them? And why do gamblers often risk more after both winning and losing, even though the odds remain the same, regardless of "streaks"? By asking questions like these and identifying answers through experiments, the field of behavioral economics considers people as human beings who are subject to emotion and impulsivity, and who are influenced by their environments and circumstances. This characterization draws a contrast to traditional economic models that have treated people as purely rational actors who have perfect self-control and never lose sight of their long-term goals-or as people who occasionally make random errors that cancel out in the long run. Behavioral economics research have helped economists better understand human economic behavior. From these principles, Daniel Kahneman No... Amos Tversky See Summary - Kahneman : Advanced information on the Prize in Economic Sciences 2002 (nobelprize.org) https:/ advanc

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