Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 20, Problem 6QAP
To determine
The behavioural economics undermine the assumptions of the standard model as to the nature of human beings.
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What is the goal of behavioral economics?
Group of answer choices
To eliminate the consumers’ state of mind from consideration in economic analysis.
To shift economic theory from a mathematical base to more of a psychological study.
To integrate the insights of psychology into economics to enrich our understanding of decision-making.
To study consumer behavior over time rather than behavior in the moment and integrate these insights in economic analysis.
why is behavioral economic beliefs better than traditional economic
Do you believe in the principles of behavioral economics as the new way to guide economic thought and theory or are the fundamentals of traditional economics(eg. Efficient Markets Hypothesis) a necessary baseline which enables us to then understand deviations from rationality? Why?
Give two examples of both real-life irrationality (behavioral economics) and rationality (traditional economics).
Chapter 20 Solutions
Microeconomics
Ch. 20.1 - Prob. 1QCh. 20.1 - Prob. 2QCh. 20.1 - Prob. 3QCh. 20.1 - Prob. 4QCh. 20.1 - Prob. 5QCh. 20.1 - Prob. 6QCh. 20.1 - Prob. 7QCh. 20.1 - Prob. 8QCh. 20.1 - Prob. 9QCh. 20.1 - Prob. 10Q
Ch. 20.A - Netflix and Hulu each expects profit to rise by...Ch. 20.A - Prob. 2QECh. 20 - Prob. 1QECh. 20 - Prob. 2QECh. 20 - Prob. 3QECh. 20 - Prob. 4QECh. 20 - Prob. 5QECh. 20 - Prob. 6QECh. 20 - Prob. 7QECh. 20 - Prob. 8QECh. 20 - Prob. 9QECh. 20 - Prob. 10QECh. 20 - Prob. 11QECh. 20 - Prob. 12QECh. 20 - Prob. 13QECh. 20 - Prob. 14QECh. 20 - Prob. 15QECh. 20 - Prob. 16QECh. 20 - Prob. 1QAPCh. 20 - Prob. 2QAPCh. 20 - Prob. 3QAPCh. 20 - Prob. 4QAPCh. 20 - Prob. 5QAPCh. 20 - Prob. 6QAPCh. 20 - Prob. 1IPCh. 20 - Prob. 2IPCh. 20 - Prob. 3IPCh. 20 - Prob. 4IPCh. 20 - Prob. 5IPCh. 20 - Prob. 6IPCh. 20 - Prob. 7IP
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- 2 examples of behavioral economics.arrow_forwardPeer pressure is an important influence on the behavior of youngsters. For instance, many preteens begin smoking because their friends pressure them into being “cool” by smoking. Using utility theory, how would you explain peer pressure? How would this compare with the explanations provided by behavioral economics and neuroeconomics?arrow_forwardOne topic of behavioral economics is?arrow_forward
- Identify and explain three differences between neoclassical economics economics and behavioral economics?arrow_forwardWhy might prospect theory-like behavior be rational? Why do many behavioral economists argue that such behavior irrational?arrow_forwardExplain two or more of the behavioral economics concepts listed below and give an example of each Response Parameters Perhaps you can provide a link to a graphic or a video that enhances your discussion. Concepts: Confirmation bias, overconfidence effect, hindsight bias, availability heuristic, planning fallacy, framing effects, anchoring, endowment effect, status quo effectarrow_forward
- Augi carefully plans out an early morning exercise routine to lose weight and get fit. When it's time to work out, however, Augi just "does to sleep in. Behavioral economics would say that Augi weighed the costs and benefits and made a rational economic decision to sleep in. used System 1 of her brain to formulate her workout plan, but then gave in to System 2 when she chose to sleep in. used System 2 of her brain to formulate her workout plan, but then gave in to System 1 when she chose to sleep in. is fundamentally lazy and incapable of sticking to a workout plan.arrow_forwardSuppose you are designing an intervention to increase daily physical activity among adults. Describe how you would draw on concepts from behavioral economics to design the intervention.arrow_forwardIdentify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today? Please provide a detailed discussion. I will not give a positive rating for vague responses.arrow_forward
- Assume it has been determined that those that identify themselves as liberal have a higher probability of buying Apple products. Explain this outcome two different ways: Part a) Using neoclassical economicsarrow_forwardBehavioral economics Indicate whether each of the following examples of behavior is consistent with the way the traditional economic framework suggests people should act, or whether it is reserved for behavioral economists to examine. Reserved for Consistent with the Predictions of Behavioral Example Traditional Economic Models Economics Some people care about how much money they make relative to other people rather than their absolute level of income. Some people would be willing to make a large sacrifice in order to help a loved one. Some people treat $55 they earn differently from $55 they win in a random drawing. Some people choose to work fewer hours after receiving a raise at work.arrow_forwardHow does the implementation of behavioral economics principles influence the success of fundraising campaigns for non-profit organizations?arrow_forward
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