Answer to Question #134310 in Macroeconomics for Amutha

Question

Leading figures in the behavioral school of economics and their hypotheses, theories, works and awards (particularly the nobel prize). Discussion of divergences from neo-classical theory Framing and advertising The endowment effect Anchor pricing Implications for business strategy and public policy under neo-classical and behavioralist assumptions(which would require more regulatory involvement?).

Answer 1

Behavioral Economics is the study of psychology as it relates to the economic decision-making processes of individuals and institutions.

Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory.