Behavioral economics is the effort to increase the explanatory and predictive power of economic theory by providing it with more psychologically plausible foundations. Behavioral economics, which recently emerged as a bona fide subdiscipline of economics, raises a number of questions of a...

Human behavior is not always consistent with standard rational choice predictions. The much-investigated variety of apparent deviations from rational choice predictions provides a promising arena for the merger of economics and biology. Although little is known about the extent to which other...

In Behavioral Economics approach, don't exist a perfect rationality to a model, but depends on limits on rationality, willpower, self-interest, and attention, where theories should be judged by the accuracy of their predictions, and not by the accuracy of their assumptions

An under-appreciated aspect of F.A. Hayek's mature views about rationality is the inter-relation of the “pure logic of choice” and rule-following behavior. Sometimes it is asserted that Hayek abandoned his earlier understanding of individual rationality and replaced it with a completely...

Lab experiments have revealed that animals sometimes outperform human-beings in terms of instrumental rationality. The current essay argues that constrained maximization tendency with consistency of preferences are perhaps genetically imbibed behavior of organism, and such examples display a...

Understanding the roles of emotion and cognition in forming preferences is critical in helping firms choose effective marketing strategies and consumers make appropriate consumption decisions. In this work, we investigate the role of the emotional and cognitive systems in preference consistency...

Experimental and behavioral economics are well established branches in the economic science. This essay presents and discusses some results and behavioral regularities from these fields which are of potential importance for public policy. After a brief introduction of what experimental and...

Using a unique dataset on health club attendance from Quebec, we look at the relationship between actual and expected attendance and how these relate to a reported measure of self-control problems at the time of contract signing. We find that a large majority of contract choices appear...

Economic analysis has had a powerful influence on legal theory and policymaking. Based on the premise that people are rational maximizers of their own utility, economic analysis has a fairly successful record in correctly predicting human behavior in all spheres of life. This success is...

Experimental and behavioral economics are well established branches in the economic science. This essay presents and discusses some results and behavioral regularities from these fields which are of potential importance for public policy. After a brief introduction of what experimental and...