Reviewing Implications of ‘Behavioural Economics’ on Our Future Life

Abstract

This paper reviews and extends our understanding of the development of behavioural economics (BE) on our life today and its possible implications in the future. The review evaluates how the behavioural theories would influence our future and would create new thinking, especially with the increasing of the repeated financial crisis. The work of John Tomer (2017) on the introduction to behavioural economics is used here to follow the essential BE theories, perspectives, trends and developments and to exploit their implications on our future life. Key areas of behavioural economics, as the bounded rationality, psychological economics, behavioural finance, nudging and behavioural macroeconomics are discussed from two perspectives, what are their contributions today and where it might go in the future. Recommendation for further research is suggested about how to optimise BE for future demand.