24 Hour Customer Service:
1-570-955-1438

Call for a quote line:
1-570-301-7456

Behavioral Economics

Individuals make economic decisions for a variety of reasons and as a result of numerous factors. Behavioral EconomicsThe study of the social, psychological, and emotional factors that cause a person to make economic decisions is known as behavioral economics; it focuses on why people and institutions make the economic choices they do, and why, if those choices are irrational, they do not follow the behavioral models that is otherwise predicted.

There are several principles of behavioral economics that stand out above others. First is the power of the concept of “free” – when consumers see even the word itself, it causes a release of dopamine; this makes consumers feel happier and increases the likelihood that they will behave in an unexpected or irrational manner. Second is the perception of quality with an increase in price; when consumers are exposed to two products, even if they are identical without the consumer knowing, they are more likely to rate the item perceived as more expensive in a more positive manner. If two glasses of wine are priced at $5 and $15, consumers are more likely to rate the latter as a better quality, even if they are unknowingly choosing between the same two wines with different price tags. Finally, the idea of too many options can actually reduce the likelihood that a consumer will make a purchase. If there are two models of televisions to choose from, consumers will evaluate them both and ultimately make a purchase. However, if there are ten models available, consumers are more likely to hesitate, unable to effectively evaluate them all to determine the best value, and ultimately purchase nothing. Despite there being a greater likelihood that their needs will be met perfectly by one of the available models, consumers are more likely to abstain from any purchases if there is too much variety. Understanding these concepts, and many others, that comprise behavioral economics allows for corporations and marketers to effectively understand and appeal to consumers.

Related Research Paper Topics

Human Behavior - Modern geneticists look for genes that dictate various behavioral traits.

Study of Human Behavior - Study of Human Behavior research papers discuss the study that focuses on several of the social sciences, principally psychology, sociology, economics, and anthropology.

Dimenions of Behavior Research Papers look at a paper order for a psychology class, with specific questions that need to be in the project.

Behavioral Theory research papers look into the school of psychology originated by American scientist John Watson and furthered by the work of B.F. Skinner.

Behavioral Psychology - Behavioral Psychology research papers examine the branch of psychology, also know as Behaviorism, that is concerned with the processes of the mind.

Human Psychology - Human Psychology research papers on an in depth analysis on the science of the mind.

Modern Human Psychology - Research papers on modern human psychology look into one of the most complex and challenging fields of study involving the mind and human behavior.

Affluenza - Research papers on affluenza discuss the term used to suggest an illness or epidemic of consumerism.

Capitalistic Society - The capitalist aim to maximize profits still drives the use of efficient, rather than ecologically conservative, methods of resource harvest and values cheap and rapidly obtained raw materials more than the ecosystem, in order to more quickly increase the production of consumer goods.