Analysis of the Effect of Thought System on Economic Decisions with Behavioral Economics

Tugba Demirtas ()

Economics Literature, 2023, vol. 5, issue 1, 31-58

Abstract: Each individual forming the society is far from mathematical models; Considering that it exists under the influence of a number of sociological, psychological, cultural or anthropological factors; The decision-making process of the individuals who make up the dynamics of the economy and the balances they create are also becoming extremely important. On a plane where the economic cannot be separated from the society and the society's individual decision-making mechanism, the shortcuts of the individual thought system come to the fore. The concept of limited rationality has come to the fore after the more frequent crises, on a plane that the mainstream economics describes as "homoeconomicus" or "rational individual" under all circumstances and argues that there are individuals who make rational decisions. It has been revealed that individuals who make complete decisions, which the economy adapts only with models, are not actually like that. In this study, while examining the psychological decision-making methods highlighted by behavioral economics, their effects on economic decisions will be discussed.

Keywords: Behavioral Economics; Thinking Systems and Decision Making Process; Public Policy; Expenditure Effect; Perception of Risk (search for similar items in EconPapers)
JEL-codes: G4 G40 G41 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ana:elitjr:v:5:y:2023:i:1:p:31-58

DOI: 10.22440/elit.5.1.2

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