https://www.harvotto.com/p/influence-self-choice.html
2024sep18 behavioral economics
Behavioral economics combines elements of economics and psychology to understand how and why people behave the way they do in the real world. It differs from neoclassical economics, which assumes that most people have well-defined preferences and make well-informed, self-interested decisions based on those preferences. https://news.uchicago.edu/explainer/what-is-behavioral-economics
The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century.[6][7] Behavioral economics is still growing as a field, being used increasingly in research and in teaching.[8] https://en.wikipedia.org/wiki/Behavioral_economics
Bounded rationality is the idea that when individuals make decisions, their rationality is limited by the tractability [easy to control or influence] of the decision problem, their cognitive limitations and the time available. https://en.wikipedia.org/wiki/Behavioral_economics
In 1979, Kahneman and Tversky published Prospect Theory: An Analysis of Decision Under Risk, that used cognitive psychology to explain various divergences of economic decision making from neo-classical theory.[24] Kahneman and Tversky utilising prospect theory determined three generalisations; gains are treated differently than losses, outcomes received with certainty are overweighed relative to uncertain outcomes and the structure of the problem may affect choices. https://en.wikipedia.org/wiki/Behavioral_economics
Satisficing is the idea that there is some minimum requirement from the search and once that has been met, stop searching. After satisficing, a person may not have the most optimal option (i.e. the one with the highest utility), but would have a "good enough" one. This heuristic may be problematic if the aspiration level is set at such a level that no products exist that could meet the requirements. https://en.wikipedia.org/wiki/Behavioral_economics
Behavioral economics aims to improve or overhaul traditional economic theory by studying failures in its assumptions that people are rational and selfish. Specifically, it studies the biases, tendencies and heuristics of people's economic decisions. It aids in determining
whether people make good choices and whether they could be helped to make better choices. It can be applied both before and after a decision is made. Satisficing Directed cognition Elimination by aspects Mental accounting Anchoring Herd behavior Framing effects Present bias Gambler's fallacy Hot hand fallacy Narrative fallacy Loss aversion Recency bias Confirmation bias Familiarity bias Status quo bias https://en.wikipedia.org/wiki/Behavioral_economics