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 ...

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 ...

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 ...

As the column’s name suggests, Thaler set out to challenge standard economic thinking by testing economic anomalies—in other words, what happens when our irrational, some might say human, selves are ...

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 ...

“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 ...

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 ...

The latest readings on consumer sentiment are sounding alarms across the financial world. While hard data on the economy can be negative, only when consumer optimism drops do we see a decrease in ...

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