Without a doubt, at the first time you heard behavioral economics, you ask yourself what is the relationship between economics and behave ? maybe you thought they can’t have any common points with each other. Every time we face these questions during we work on behavioral economics, we examined different ways to answer this question and now we prepare the best answer for you. We collect Excerpts of world’s researchers speeches in behavioral economics in the video on this page. As America's financial crisis on 2008 and, the government shuted down, there was a discussion that why this crisis happened even with the Calculations, charts and detailed forecasts of economists.
Behavioral economists believed that economic focused on numbers, mathematics and charts consumedly and it’s initial default about a completely logical human is wrong. And because of these, behavioral economics was noted in America. Daniel kahnman and the other behavioral economists believed that economic means “The study of human economic behavior” which is not that logical in decision making. They said there are objection to the Shakespeare’s Quotes about human that said “What a piece of work is a man! How noble in reason, how infinite in faculty! In form and moving how express and admirable! In action how like an Angel!”
They believed that Very wise man with arithmetic mind does not exist and it is just a myth. Human being always knews him self as the best critter and he has no doubt about his ability of doing great activities, now how about looking at the issue from another point of view?
If humans are able to make wonderfull and faultless decisions, what is the reason of project’s failure? What is the reason of america’s shutdown on 2008 ? This is the answer : certainly we can’t find anything smarter than the human brain in the universe, but this incredible brain that works 24 hour a day for us is making mistake too.
And the bad side is that these mistakes occurs as easy as you can’t imagine and in a blink, our brian makes a wrong decision. Researchers are seeking for a solution to this problem and trend toward ideal decisions for many years.
We can poin to the siences as behavioral economics in this circle, which belives that humans are not that rational as neo classic economic said, and there are a lot of things that affect on our decision making. BE said issues as emotions, attitudes, intellectual bugs and … has a strong affects on our decisions. Behavioral economis is a subset of cognitive science. We can examine different topics by using cognitive science as war, criminology, energy-saving solutions and etc.
At last this science tells us not even we are making mistakes every day, but we always repeat them. Our misleading behaves are not random or meaningless, perhaps they are predictable. We can lead our behave and our businesses to the favorable way by using behavioral economics. Besides that behavioral economics can carry us closer to reality than numerical calculations of classic economics.