The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

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Answer 1

Question

Chapter 18, Problem 1Q

To determine

The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

Expert Solution & Answer

Explanation of Solution

The standardized version of “Homo economicus” considers individuals to be fundamentally rational. Rationality is defined by individuals undertaking actions and choices that provide the self with maximum benefit. It is self-satiating at its core and presumes that an individual prioritizes one’s own needs over any other’s.

The “Homo economicus” model understood by behavioral scientists is different. While it is based on the principle of an individual’s satisfaction, it goes by a system called “altruism model”, where it describes individuals’ interests to be contingent on the interests (can be both beneficial or detrimental) of other individuals.

Hence, instead of assuming economic agents to simply be self-serving, social scientists consider economic agents to derive utility from others as well.

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Students have asked these similar questions

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.

How does Homo Economicus influence economic models? Describe an argument against using Homo Economicus as the basis of economic theory.

Which scenario illustrates initiative as a motivator for behavior change? José notices that he doesn’t feel well when he drinks milk, so he eliminates milk from his diet. Alan’s girlfriend will buy him a new shirt if he stops using chewing tobacco. Gretchen thinks about how happy her doctor will be when he hears that she has been exercising regularly. Mike decides to take boxing lessons so that he can defend himself from bullies.

Answer 2

Question

Chapter 18, Problem 1Q

To determine

The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

Expert Solution & Answer

Explanation of Solution

The standardized version of “Homo economicus” considers individuals to be fundamentally rational. Rationality is defined by individuals undertaking actions and choices that provide the self with maximum benefit. It is self-satiating at its core and presumes that an individual prioritizes one’s own needs over any other’s.

The “Homo economicus” model understood by behavioral scientists is different. While it is based on the principle of an individual’s satisfaction, it goes by a system called “altruism model”, where it describes individuals’ interests to be contingent on the interests (can be both beneficial or detrimental) of other individuals.

Hence, instead of assuming economic agents to simply be self-serving, social scientists consider economic agents to derive utility from others as well.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 1Q

To determine

The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

Expert Solution & Answer

Explanation of Solution

The standardized version of “Homo economicus” considers individuals to be fundamentally rational. Rationality is defined by individuals undertaking actions and choices that provide the self with maximum benefit. It is self-satiating at its core and presumes that an individual prioritizes one’s own needs over any other’s.

The “Homo economicus” model understood by behavioral scientists is different. While it is based on the principle of an individual’s satisfaction, it goes by a system called “altruism model”, where it describes individuals’ interests to be contingent on the interests (can be both beneficial or detrimental) of other individuals.

Hence, instead of assuming economic agents to simply be self-serving, social scientists consider economic agents to derive utility from others as well.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 1Q

To determine

The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

Expert Solution & Answer

Explanation of Solution

The standardized version of “Homo economicus” considers individuals to be fundamentally rational. Rationality is defined by individuals undertaking actions and choices that provide the self with maximum benefit. It is self-satiating at its core and presumes that an individual prioritizes one’s own needs over any other’s.

The “Homo economicus” model understood by behavioral scientists is different. While it is based on the principle of an individual’s satisfaction, it goes by a system called “altruism model”, where it describes individuals’ interests to be contingent on the interests (can be both beneficial or detrimental) of other individuals.

Hence, instead of assuming economic agents to simply be self-serving, social scientists consider economic agents to derive utility from others as well.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1Q

To determine

The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

Expert Solution & Answer

Explanation of Solution

The standardized version of “Homo economicus” considers individuals to be fundamentally rational. Rationality is defined by individuals undertaking actions and choices that provide the self with maximum benefit. It is self-satiating at its core and presumes that an individual prioritizes one’s own needs over any other’s.

The “Homo economicus” model understood by behavioral scientists is different. While it is based on the principle of an individual’s satisfaction, it goes by a system called “altruism model”, where it describes individuals’ interests to be contingent on the interests (can be both beneficial or detrimental) of other individuals.

Hence, instead of assuming economic agents to simply be self-serving, social scientists consider economic agents to derive utility from others as well.

Answer 6

Chapter 18, Problem 1Q

To determine

The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

Expert Solution & Answer

Explanation of Solution

The standardized version of “Homo economicus” considers individuals to be fundamentally rational. Rationality is defined by individuals undertaking actions and choices that provide the self with maximum benefit. It is self-satiating at its core and presumes that an individual prioritizes one’s own needs over any other’s.

The “Homo economicus” model understood by behavioral scientists is different. While it is based on the principle of an individual’s satisfaction, it goes by a system called “altruism model”, where it describes individuals’ interests to be contingent on the interests (can be both beneficial or detrimental) of other individuals.

Hence, instead of assuming economic agents to simply be self-serving, social scientists consider economic agents to derive utility from others as well.

Answer 7

Chapter 18, Problem 1Q

To determine

The nature of “Homo economicus” in mainstream economics and its nature in social spheres.

Answer 8

Expert Solution & Answer

Explanation of Solution

The standardized version of “Homo economicus” considers individuals to be fundamentally rational. Rationality is defined by individuals undertaking actions and choices that provide the self with maximum benefit. It is self-satiating at its core and presumes that an individual prioritizes one’s own needs over any other’s.

The “Homo economicus” model understood by behavioral scientists is different. While it is based on the principle of an individual’s satisfaction, it goes by a system called “altruism model”, where it describes individuals’ interests to be contingent on the interests (can be both beneficial or detrimental) of other individuals.

Hence, instead of assuming economic agents to simply be self-serving, social scientists consider economic agents to derive utility from others as well.