an economics branch which keep concentrate on


An economics branch which keep concentrate on illumination the economic decisions people make in practice, particularly when these conflict with what conventional economic theory predicts they can do. Behaviorists try to expand or swap usual ideas of economic rationality with decision-making models borrowed from psychology. According to psychologist’s aspects, the people are excessively influenced by a fear of feeling regret & will often forgo benefits even to avoid only a small risk of feeling they have failed. They are also prone to cognitive dissonance, often holding on to a belief plainly at odds with new evidence, usually because the belief has been held & cherished for a long time. Then there is anchoring, the people are often overly influenced by outside suggestion. People apparently also suffer from status quo bias, they are willing to take bigger gambles to maintain the status quo than they would be to acquire it in the first place.

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Microeconomics: an economics branch which keep concentrate on
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