Ishikawa, Japan-- Consumer purchasing decisions can be considered as a form of preference-based human reasoning. There are two major schools of thought on preference. While mentalism asserts that ...

“One of the basic axioms of the rational theory of decision under uncertainty is Savage’s (1954) sure-thing principle (STP). It states that if prospect x is preferred to y knowing that Event A ...

Behavioral economics combines information about human behavior and outcomes with more standard methods of economic analysis. Behavioral economics has been applied in various contexts such as ...

Algorithms are no longer purely mechanical: by understanding and integrating behavioral biases, traders can turn human emotions into measurable signals for market advantage. A recent study published ...

Over the last 10 years, Behavioral Economics (BE) has become increasingly popular (see Google Trends chart below). According to BE, people’s economic decisions are often less guided by stable ...

Ever bought a monthly gym membership thinking it would make you go more often? Or chosen a health insurance policy with a lower deductible, even though the premium was much higher? You’re not alone – ...

It is a bit difficult to say what criteria should be used to judge the success or failure of a research initiative on the scale of merging psychology and economics. Two reasonable criteria, at least ...

Behavioral economics helps investors understand irrational market behaviors and customer choices. Examples of behavioral economic theories include loss aversion and sunk-cost fallacy. Recognizing ...

In just a few years, the world has witnessed major challenges, including the disastrous impact of climate change, political polarization, economic downturns, and violent conflict, as well as a global ...