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- Why might prospect theory-like behavior be rational? Why do many behavioral economists argue that such behavior irrational?
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- Prospect theory is based on behavioral economists' understanding of how people what? react to good things (or gains) and bad (or losses). make predictions about their future income. search for job prospects or business prospects. behave under stressful conditions.What is the goal of behavioral economics? Group of answer choices To eliminate the consumers’ state of mind from consideration in economic analysis. To shift economic theory from a mathematical base to more of a psychological study. To integrate the insights of psychology into economics to enrich our understanding of decision-making. To study consumer behavior over time rather than behavior in the moment and integrate these insights in economic analysis.Identify a personal economic decision that was driven by a behavioral bias rather than by pure rational behavior. Given your understanding of behavioral economics, how would your decision differ today? Please provide a detailed discussion. I will not give a positive rating for vague responses.
- Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about whether a theory incorporates those actual mental processes?What is loss aversion? Explain how the topic is related to behavioral economics? Give at least two examples.According to behavioral economics, consumers A. do not always behave rationally because they fail to ignore sunk costs. B. always behave rationally because they account for sunk costs. C. always behave rationally because they take into account monetary costs and nonmonetary opportunity costs. D. do not always behave rationally because they take into account nonmonetary opportunity costs. E. do not always behave rationally because they accurately project their future behavior.
- URGENT help needed. Behavioral economicsIdentify and explain three differences between neoclassical economics economics and behavioral economics?Explain two or more of the behavioral economics concepts listed below and give an example of each Response Parameters Perhaps you can provide a link to a graphic or a video that enhances your discussion. Concepts: Confirmation bias, overconfidence effect, hindsight bias, availability heuristic, planning fallacy, framing effects, anchoring, endowment effect, status quo effect
- What does behavioral economics have to say about each of the following statements? a. “Nobody is truly charitable—they just give money to show off.” b. “America has a ruthless capitalist system. Considerations of fairness are totally ignored.” c. “Selfish people always get ahead. It’s like nobody even notices!”University Health System located in San Antonio, Texas implemented a patient navigation program to improve screening for colorectal for Hispanic males, 50 and older, who were members of CareLink (Bexar County’s financial assistance program), and who had not received colorectal cancer screening in the last 10 years. The program incorporated the principle of ____________ (i.e. mistakes are expected and opportunities are given for correction) by making calls to remind patients of their missed appointments. This is a behavioral economics principle under the behavioral concept of ____________. Availability, Judgement Allowance for errors, Choice architecture Framing effects, Decision-making Fairness, Decision-makingIndicate whether each of the following examples of behavior is consistent with the utility-maximization framework of traditional economics or is better explained by concepts developed by behavioral economists. Example Consistent with the Predictions of Traditional Economic Theory More Effectively Addressed by Behavioral Economics There are people who pursue a degree in theater rather than engineering, even though engineering careers are usually much higher-paying. Some people treat $55 they earn differently from $55 they win in a random drawing. Some people would pay money to lower the incomes of others. People at all-you-can-eat restaurants eventually leave, even though they could continue eating for free.