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Definition and the Features of Behavioral Economics

by Apr 18, 2018Homework Answers

Behavioral economics is a mixture of economics and psychology that give insight into an individual behavior in the field of economics in their own best interest. Human errors are possible in workings of a company to overcome that barrier and take wiser decisions.
Behavior economics came into existence against the backdrop of the traditional economic in practice referred to as a rational preference model. A person can take rational decisions with correct decisions and benefits and bring out the best alternative of choice for him or herself.
The rationale:
When one knows about their present and future expectations and never oscillates between contradictions of decisions. To reach long term benefit, there is a need to have self-control and abstain from wrong decisions; this occurs in traditional economics to determine actual economic behavior.
On another hand, behavioral economics traces decision errors pertaining to the human mind; it brings into an amalgamation of economic analysis and human behavior. It strives towards more rational decision with correct emotional and cognitive shortcomings. Behavioral economics homework answers help to understand where people go wrong in their choices and enhance decision-making ability.
A Framework of Behavioral Economics:
Heuristic rule-
In this way, a decision is made on preference basis rather than on logical thinking that affects their action.
The approach of presenting a problem affects the individual in decision making.
Inadequacy in the market-
Observed market results often contradict the rational results leading to inadequacy in the market.
Features of Behavioral Economics:
Confidence in yourself rather than just available information gives you the edge to take best decisions.
It affects the way the choices are made even though marginal benefit and marginal cost remain unaffected.
Faulty discount-
While taking decisions for future benefits agitation must be avoided. Present costs and benefits are higher than future cost because of opportunity cost present in the current scenario.
Need of Behavioral Economics:
It helps in giving a clear picture on understanding the approach of behavioral economics in decision-making. Helps an individual to take wise decisions and avoid inappropriate mistakes. Also, leads to functional and better policies in a decision-making process.
Limitations of Behavioral Economics:
The main limitation of behavioral economics is that its approach is individualistic. Behavioral economics evolves from observations. Therefore, it doesn’t help in the way that it could have. Behavioral economics should be based on social interactions and perspective.
Implications of Behavioral Economics:
Behavioral economics uses the psychological approach in decision-making. It is a different concept that is changing the way of looking at the concepts of traditional economics. According to traditional economics concept, an individual’s needs are unlimited, their tastes and preferences keep on changing frequently and cost minimizing.
Behavioral economics tries to change the concept by quoting that people’s choices are affected by certain criteria such as particular situations, readily available information with a preconceived notion and information present in the environment.
Behavioral economics is a larger part in the context of economics as it consists of cognitive sciences and social psychology that have opened different avenues in the process of decision-making. It also involves the concept of anthropology that is the utilization of human interaction.
Hence, it can be concluded that Behavioral Economics is an integral and important part of economics. It has brought different perception and concept in the field of economics. That will further help the modern economists to take up new researches and bring about certain changes at a larger level rather than an individual.
Hurdles faced by students-
Students do struggle in meeting deadlines of any assignment completion either due to study load or lack of time management efficiently. For students of an economics field, timely completion of assignments or homework is the top priority.
However, for students, it is natural to receive lots of assignments or homework. But, it is the assignments that make students learn and understand the essence of any subject gradually.
Loophole in studying process:
Students constantly read books or guides to cater better understanding of any tough subject and related topics in every following manner. General criterion of studying is from books and original fetching of information.
The information gathered of the above improves learning among majority of students but, another section of students avails only superficial knowledge of that particular topic pertaining to its complexity to comprehend. Here, behavioral economics homework answers can enhance the learning capability of those students and provide a deeper insight into the subject.
Illustration of behavioral economics through behavioral economics homework answers is of great help, and this will remind us of its need and importance in the scenario of economics. But, now students can get the solution to assignment and live up to the standard set by the college already on your bookshelf.
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Help of Behavioral economics homework answers may even enhance the chances of learning a complex topic in an easy way. By learning more about the topic in which a student is facing challenges getting homework answers will make them stand out in academics. With better learning skills will make one comprehend the subject thoroughly. Nowadays, online homework answers are on the rise, students with its help could excel in their weak area.