*behavioral economics*

*’behavioral economics’ (along with the related sub-field ‘behavioral finance’) studies the effects of [‘psychological’ / ‘social’ / ‘cognitive’ / ’emotional’] factors on the economic decisions of ‘individuals’ + ‘institutions’ and the consequences for [‘market prices’ / ‘returns’ / ‘resource allocation’], although not always that narrowly, but also more generally, of the impact of different kinds of ‘behavior’, in different ‘environments’ of varying ‘experimental values’*

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(‘risk tolerance’ is a crucial factor in ‘personal financial decision making’)

(‘risk tolerance’ is defined as individuals’ willingness to engage in a financial activity whose outcome is uncertain)

(‘behavioral economics’ is primarily concerned with the bounds of ‘rationality’ of ‘economic agents’)

(‘behavioral models’ typically integrate insights from ‘psychology’, ‘neuroscience’, and ‘microeconomic theory’; in so doing, these behavioral models cover a range of ‘concepts’, ‘methods’, and ‘fields’)

(the study of ‘behavioral economics’ includes how ‘market decisions’ are made and the mechanisms that drive ‘public choice’)

(the use of the term “behavioral economics” in U.S. scholarly papers has increased in the past few years, as shown by a recent study)

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[there are 3 prevalent themes in ‘behavioral finance’…]

#1

“heuristics”

(huer IS tix)

(humans make 95% of their decisions using ‘mental shortcuts’ or ‘rules of thumb’)

(do they?)

(according to…?)

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#2

“framing”

(the collection of ‘anecdotes’ + ‘stereotypes’ that make up the [(‘mental’ / ’emotional’) filters’] individuals rely on to ‘understand’ + ‘respond to’ events)

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#3

“market inefficiencies”

(these include ‘mis-pricings’ + ‘non-rational decision-making’)

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*πŸ‘¨β€πŸ”¬πŸ•΅οΈβ€β™€οΈπŸ™‡β€β™€οΈ*SKETCHES*πŸ™‡β€β™‚οΈπŸ‘©β€πŸ”¬πŸ•΅οΈβ€β™‚οΈ*

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πŸ“šπŸ“–|/\-*WIKI-LINK*-/\|πŸ“–πŸ“š

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πŸ‘ˆπŸ‘ˆπŸ‘ˆβ˜œ*β€œMICRO-ECONOMICS”* ☞ πŸ‘‰πŸ‘‰πŸ‘‰

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πŸ’•πŸ’πŸ’–πŸ’“πŸ–€πŸ’™πŸ–€πŸ’™πŸ–€πŸ’™πŸ–€β€οΈπŸ’šπŸ’›πŸ§‘β£οΈπŸ’žπŸ’”πŸ’˜β£οΈπŸ§‘πŸ’›πŸ’šβ€οΈπŸ–€πŸ’œπŸ–€πŸ’™πŸ–€πŸ’™πŸ–€πŸ’—πŸ’–πŸ’πŸ’˜

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*🌈✨ *TABLE OF CONTENTS* ✨🌷*

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πŸ”₯πŸ”₯πŸ”₯πŸ”₯πŸ”₯πŸ”₯*we won the war* πŸ”₯πŸ”₯πŸ”₯πŸ”₯πŸ”₯πŸ”₯