Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 54 , 01 December 2023
Open
Access | Article
The Introduction to Behavioral Economics and Its Widespread Use across Different Areas of Economics and Policymaking
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Abstract
In exploring the realm of behavioral economics, we find that traditional economic theories often overlook the intricacies of human psychology. Behavioral economics can be perceived as a compelling intersection of psychology and traditional economics. Rather than always acting rationally, individuals are influenced by cognitive biases, heuristics, and framing effects. These insights from behavioral economics have broad applications, spanning from personal finance to comprehensive public policies. Policymakers and economists alike now integrate behavioral perspectives to design more effective interventions. By recognizing human tendencies, we can nudge individuals towards better decisions, thereby enhancing societal welfare. Examples of such applications include reframing retirement savings options, devising strategies for improved tax compliance, and crafting initiatives to decrease energy consumption. Through these insights, we emphasize the potential of behavioral economics to craft a more informed and efficient approach to addressing economic challenges. Behavioral economics has a transformative power that goes beyond traditional economic frameworks. By merging psychological insights with economic principles, we gain a multifaceted perspective that enables us to navigate these complexities more adeptly.
Keywords
behavioral economics, cognitive biases, policymakers, societal welfare, economic challenges
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-155-1
- ISBN (Online)
- 978-1-83558-156-8
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/54/20230879
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited