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The Relationship Between Psychology and Economics

Sedef Sen

No 1, Working Papers from Okan University Research Centre for Financial Risks, OKFRAM

Abstract: Economics is a science which is constantly progressing and interacting with other sciences. Studies in the economics literature discuss how people display a behavior in the economic decision- making progress. Psychology is a science which explains behavior of people and it cannot be ignored that psychology has a profound effect on economics. Human psychology and behaviors show complex structures, stereotyping people as indicating homogeneous behavior is criticized by many academics and researchers. In this study, it is examined how human psychology guides people when they make economic decisions and the purpose of this research is to analyze how the relationship between economics and psychology has progressed and to explain behavioral economics in this framework.

Keywords: Psychological Economics; Behavioral Economics (search for similar items in EconPapers)
JEL-codes: A12 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2012-03, Revised 2012-03
New Economics Papers: this item is included in nep-evo and nep-neu
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