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.

Our inner thoughts influence all our interactions and decisions. 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.


5 thoughts on “Psychology & Behavioural Economics

    • Thank you, I hope it was ‘interesting’ in a good way :).
      From your research, do you have insights or points for reflection for the sort of person that is described as an ‘all-rounder’ or ‘very capable’ that needs to work-for-someone (be valued by their employer) and/or doesn’t know on which skill or field to focus?

  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.

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