Psychology & Behavioural Economics

Nugget post:
My interest is growing for Psychology and Behavioural Economics. I have always been interested in Demographics but my background being Finance a crucial aspect was missing.

I was surprised by the revelation that, despite the enormity of both these subjects, what informs them and the people that theorise them, is the day-to-day thoughts and interactions WE RARELY ACKNOWLEDGE OUT LOUD.

Whether you are relating to friends, colleagues at a meeting, a partner or a person you have a crush on, the – sometimes subtle – thoughts that run through your head will strongly determine the progress and outcome of those relationships.

From “I can feel something in my nostril, let me stop this conversation and do a mirror check.” to “He left because I was boring and my breath stinks.” every one of those thoughts and focus-deviating ideas are routed in bigger mind matters such as, a past event that made us insecure or society’s take on “dumb” blond people.

Add all those countless interactions together, for each individual in any location, and you have an economy that thrives proportionally to HOW OPEN IT IS TO PERSONAL UNDERSTANDING.

I was hoping the capitals would help emphasize what I mean but I can now see they only make the post look ugly. Anyway,… ampler observations on the topics above are on their way. Thanks for reading : ).

About these ads

3 thoughts on “Psychology & Behavioural Economics

  1. Behavioral economics represented a fruitful endeavor in its early days (the late ’70s), what with the work of Herbert A. Simon, Amos Tversky, Daniel Kahneman and Ed Diener, amongst others. By the 21st century, however, much – though not all – of the work is now little more than an ad hoc attempt to empirically justify the a priori theoretical musings of neoclassical economics. A sad fate indeed.

      • investment and finance markets are real, with investors acting and reacting, rationally or irrationally. While mathematical models of markets may come or go, at least this discipline/industry isn’t built on inappropriately applied theoretical musings, all too common in economics. Economics as a discipline would have been better served if it had developed biology envy rather than physics envy in the late 19th century.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s