An Overview of Behavioral Economics

Hans Overturf graduated summa cum laude from Humboldt State University with a degree in economics. Studied in behavioral economics, Hans Overturf has studied stock market crashes extensively.

The field of behavioral economics is a difficult one to master, as it combines elements of psychology and sociology with traditional economics. Unbounded rationality, unbounded selfishness, and unbounded willpower are the three unrealistic components of traditional economy that behavioral economists seek to address. Behavioral economics is often underscored by two primary questions, namely, whether the profit-driven assumptions of economists and executives can be applied to actual people and societies and how individuals measure risk in comparison to how various economic and business models calculate it. Even formulas developed specifically to gauge how the average consumer will react in a high- or low-risk situation designate humans as Homo economicus, meaning that they will blindly follow economic trends without being affected by proven aspects of cognitive and social psychology.

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