Field Of Behavioral Economics Research Articles

Más Allá de las Medidas Tradicionales: Evaluación de Nudges en la Mitigación de la Corrupción y Deshonestidad

Corruption represents a significant global obstacle, adversely affecting political, economic, social, and environmental domains. It manifests in a variety of forms and contexts, requiring mitigation strategies, regulations, and policies that involve complex and structural adaptations. Within the field of behavioral economics, the innovative approach of using nudges has emerged—a methodology designed to alter human behavior in predictable ways without restricting available choices. When applied in an ethical context, these nudges have been used to correct improper behaviors such as dishonesty, bribery, and corruption. This study offers a detailed analysis of six research works focused on nudges specifically designed to address and reduce corrupt and dishonest behaviors, evaluating their effectiveness according to different theoretical frameworks. The study emphasizes the critical importance of considering cultural context and the specificities of each situation when implementing nudges, as well as the need to explore their applicability across diverse contexts to develop more robust methodologies.

Examining the Status Quo Bias for the Recent Global Economic Crisis: The Case of Türkiye

The objective of this paper is to investigate the "status quo bias,” which is a key concept in behavioral economics, using macroeconomic data from the recent economic crisis in Türkiye. The current global economic situation provides a favorable opportunity to analyze this idea, as there are abundant and relevant inputs for this type of study. Specifically, this paper analyzes the nexus between consumption and income before and after the economic crisis that triggered by the Covid-19 pandemic in Türkiye, with the aim of examining the "status quo bias” by employing ARDL Bounds Test. The analysis findings support that Türkiye has exhibited status quo bias for the period from 2013 to 2022. This research fills a gap in the literature by presenting evidence that Türkiye, a country that has been overlooked in the field of behavioral economics, exhibits the status quo bias in the context of recent economic crisis triggered by the Covid-19 outbreak.

A Field Experiment on Pro-Social Nudges: The Snowballing Problem

In contrast to traditional economic methods to address negative externalities, the study of pro-social nudges within the field of behavioral economics is quickly developing (Carlsson et al., 2019, 2021; Schubert, 2017). The aim of pro-social nudges is to reduce a negative externality to a defined group or community. This study uses a natural field experiment to examine the impact of a pro-social nudge on a local negative externality of hot rooms in college residence buildings and the resulting more global externality of excess greenhouse gas emissions. These externalities are the result of the interplay between the heating system and the propensity of students to open their windows causing the system to produce more heat to everyone––labeled the snowballing problem. This study suggests the nudge did not reduce the negative externalities, rather it may have backfired and exacerbated the existing problem (room temperatures increased 0.5–1.6 F° after the intervention). As the results illustrate, addressing negative externalities with pro-social nudges may be particularly challenging because they often target behavior that benefits a larger society and requires the individual to experience some short-term disutility.

Nudges in sustainable water management practices: Implementation, key findings and research agenda

Nudging has emerged as an alternative policy for managing water demand in the residential sector. Indeed, numerous field studies have been recently published to assess the impact of nudges on water consumption. In parallel, a substantial body of literature has developed in the field of behavioral economics, including laboratory experiments to evaluate the effects of nudge-type or boost treatments on individual behavior. However, the corresponding results are frequently overlooked in field studies. In this context, focusing on the residential water sector, the aim of this survey paper are, first, to review field experiments and address key issues in behavioral economics; and second, to present results obtained from laboratory experiments that could enhance nudging policies. We conclude by discussing additional unexplored areas and their policy implications.

Behavioural Economics and Decision Making

For a considerable time, conventional economic models have assumed that people make logical judgements when presented with all available information; nevertheless, actual data frequently challenges this presumption. This study explores the fascinating field of behavioural economics and decision making, illuminating the complex interactions between emotions, social influences, and cognitive biases that affect our decision-making. The trip starts with Prospect Theory, which revealed the human propensity to place a higher value on losses than gains and completely changed our understanding of how people make decisions in risky and uncertain situations. The "nudging" theory developed by Thaler and Sunstein shows how little interventions can improve decisions and open the door to new policy applications. By disproving the idea of irrationality, Gigerenzer's investigation of constrained rationality highlights the function of heuristics in streamlining difficult decisions. A recurring topic is real-world applications; Duflo, Kremer, and Robinson's work demonstrates how behavioural insights might enhance agricultural performance. As behavioural economics develops further, it presents interesting directions for future study, such as the dynamics of group decision-making, the creation of policies, and the impact of technology on decision-making. In summary, behavioural economics goes beyond the classroom and offers a useful lens through which we may see the intricacies of human decision-making.

Methodological Approaches to Teaching Behavioral Economics

Key words: new behavioral economics, models of behavioral economics, rational behavior, paradoxes, the effect of control (endowment effect), games of justice The economy is a living organism because it is managed by an economic man, but the assertion that human behavior is purely rational is rejected by modern researchers. As rational and irrational components of human choice move into the economy, they significantly influence market relations. To better understand the essence of people as subjects of the economy, it is necessary to thoroughly understand their economic behavior, to identify the reasons and consequences of making the certain economic decision. Based on the findings of the researchers in the field of behavioral economics, subjects of market relations cannot be manipulated by major market players or pressure from the majority, thereby controlling and successfully froming their behavior. The researches of leading scientists in the field of behavioral economics, their developed business games and teaching methodologies were studied in article. Teaching behavioral economics, as a separate university course, will help students acquire more up-to-date knowledge and skills.

Expressions of Irrational Investment Behaviour and Proposals to Reduce the Irrational Behaviour

Behaviour finance gained more and more weight in the development of finance theory in comparison to standard finance theory which is dominated by the efficient market hypothesis. As a field of behavioural economics, it combines psychology and finance to understand how human behaviour and cognitive biases impact financial decision-making. Some market anomalies which seem strange or impossible according to standard finance theory can be understood and explained with the help of behavioural finance theory. Through analysis and literature review, this paper explores the common expressions of irrational behaviour such as representativeness, herd effect, anchoring, overconfidence, and their effect on the investment financial market. This paper finds that people can be easily influenced by any given information. Individuals personalities and social backgrounds also play a decisive role in making investment decisions. Therefore, some possibilities and advice to reduce the losses caused by human cognitive biases are also provided in the paper.

Tackling steroid phobia: Insights from behavioural economics and psychological approaches

AbstractSteroid phobia, characterized by an irrational fear or avoidance of topical corticosteroids, poses a significant challenge to the effective treatment of various skin conditions, including atopic dermatitis (AD) and psoriasis. This issue has its roots in the introduction of topical corticosteroids in the 1950s and has been perpetuated by concerns regarding adverse effects and misinformation. International Dermatological Societies including the Japanese Dermatological Association have endeavored to address this problem by providing information and guidance to physicians and patients, resulting in a better understanding of appropriate steroid use and risk management. Despite these efforts, steroid phobia has not been fully resolved in the world, including in Japan.To shed light on potential solutions, this review explores the field of behavioral economics, which offers insights into human decision‐making processes and cognitive biases. Richard Thaler's concept of nudges emerges as a promising strategy for influencing patients' decision‐making regarding steroid treatments. However, the effectiveness of nudges may vary depending on the strength of an individual's concerns and fears. In cases where patients exhibit strong resistance to steroid use, alternative psychological techniques that establish trust and facilitate clear communication may be more beneficial.This review emphasizes the necessity of adopting a multifaceted approach that integrates principles from behavioral economics and employs complementary psychological strategies to address steroid phobia and enhance treatment adherence in affected patient populations. By combining these approaches, healthcare professionals can tackle the complex nature of steroid phobia and promote better treatment outcomes for patients with skin conditions.

ПОВЕДЕНЧЕСКАЯ ЭКОНОМИКА: ИНТЕГРАЦИЯ И СИНЕРГИЯ ЭКОНОМИКИ И ПСИХОЛОГИИ

The article analyzes the scientific merits of behavioral economics, as one of the most promising and dynamically developing trends in modern science that is of great interest to researchers. Particular attention in the article is paid to the analysis of the scientific conclusions of Nobel laureate R. Thaler who is considered to be the most authoritative scientist in the field of behavioral economics. Scientific integration with psychology has enriched the methodology of economic research with many new scientific approaches, including experiment, which until the beginning of the 21st century was generally considered almost unacceptable in economic practice due to the irreversibility and unpredictability of its consequences. However, the use of experiment to study the psychological characteristics of people's behavior helped to understand the logic of many economic processes better, making them more predictable and controllable. The article concludes that the scientific developments of representatives of behavioral economics are important both for economic theory and for economic practice. They are implemented in predicting the dynamics of various markets, in optimizing socio-economic decisions based on the policy of ‘libertarian paternalism’. With their help, the widely used hyperbolic discounting model was developed, and another new branch of economics emerged — behavioral finance.

Scheduling with present bias

The study of time‐inconsistent decision‐making, in particular present bias, has greatly influenced the field of behavioral economics over the last two decades. Moreover, it has resulted in the design and implementation of widely used incentive schemes for various important applications. However, the effect of present bias on decision‐making for operational problems has been studied less. This work considers the effect of present bias in a simple scheduling system that requires decisions about project timing and sequencing. We design algorithms that enable optimization of revenue less cost under present bias for both naive and sophisticated (i.e., self‐aware) decision‐makers. We describe managerial insights about the relative performance of time‐consistent, naive, and sophisticated decision‐makers, and how to mitigate the effects of present bias. Both theoretical and computational results support these insights.

Financial risk tolerance of individuals from the lens of big five personality traits – a multigenerational perspective

PurposeThis study aims to analyse the impact of the big five personality traits on the financial risk tolerance of individuals. Furthermore, it also examines the differences in personality traits and financial risk tolerance across four generations: baby boomers, Generation X, millennials and Generation Z.Design/methodology/approachThe data constituted 869 responses from Indian individuals, collected using a self-administered structured questionnaire using a convenience sampling technique.FindingsStructural equation modelling analysis showed that openness to experience, extraversion and neuroticism had a significant impact on financial risk tolerance. Multivariate analysis revealed the role of specific personality traits in predicting the financial risk tolerance of generational cohorts. Mean difference showed that millennials and Generation Z had the greatest risk tolerance, whereas the tolerance levels were lower for Generation X and baby boomers.Research limitations/implicationsThis research provides insights into the role of personality on financial risk-taking among generational cohorts in India. Thus, these results cannot be generalised for other risk-taking domains or outside the Indian context.Originality/valueThis study’s results align with the pulse rate hypothesis of generational theory and contribute to the growing field of behavioural economics and finance. It provides a perspective of the emerging economy of India, where behavioural finance studies are still at a nascent stage.

Ecological rationality and economics: where the Twain shall meet

Over the past decades psychological theories have made significant headway into economics, culminating in the 2002 (partially) and 2017 Nobel prizes awarded for work in the field of Behavioral Economics. Many of the insights imported from psychology into economics share a common trait: the presumption that decision makers use shortcuts that lead to deviations from rational behaviour (the Heuristics-and-Biases program). Many economists seem unaware that this viewpoint has long been contested in cognitive psychology. Proponents of an alternative program (the Ecological-Rationality program) argue that heuristics need not be irrational, particularly when judged relative to characteristics of the environment. We sketch out the historical context of the antagonism between these two research programs and then review more recent work in the Ecological-Rationality tradition. While the heuristics-and-biases program is now well-established in (mainstream neo-classical) economics via Behavioral Economics, we show there is considerable scope for the Ecological-Rationality program to interact with economics. In fact, we argue that there are many existing, yet overlooked, bridges between the two, based on independently derived research in economics that can be construed as being aligned with the tradition of the Ecological-Rationality program. We close the paper with a discussion of the open challenges and difficulties of integrating the Ecological Rationality program with economics.

Fighting gender violence with behavioral public policy: scope and limitations

Since the concept of “nudge” was introduced in 2008 by Thaler and Sunstein, proposing that small interventions based on changesin choice architectures can alter people’s behavior and make it easier for them to achieve their desired goals, the application in public policy ofbehavioral economics has gained significant attention. This has led to the emergence of different types of policies based on behavioral insights,which have been used in a variety of areas, including health or finance, with the goal of promoting well-being and addressing social and economicissues. After providing a basic theoretical background as a frame of reference to understand gender violence, this study explores the use of tools from the field of behavioral economics as it is applied in public policy. Regulatory (paternalistic) and non-regulatory (libertarian) interventions based on behavioral insights will be considered: nudges, boosts, shoves, budges, or sludge audits, are examined as potential interventions to use in matters related to this type of violence. After evaluating these behavioral policy instruments and their potential effectiveness, the limitations ofthe behavioral perspective are recognized, and the need for a multifaceted approach to combating gender violence is acknowledged. The article concludes by arguing that public policies addressing gender violence should not only utilize behavioral tools but should also incorporate strategies related to education, legislation, and social norms.

An approach to customer trust In the portuguese banking system

Globalization, seen as a simultaneous transformation in economics, politics and culture, has led to more intense competition in different sectors of the economy. In the banking sector the analysis of customer satisfaction, loyalty and trust has been considered of great interest in recent years. In this study, we analyse the development of bank customer satisfaction and loyalty and, with more detail, the development of customer trust, using the results of surveys carried out with relevant statistical samples in Portugal and, for the first time, we also extend this analysis to bank customers in Spain. Scientific development, particularly in the field of behavioural economics, which includes many contributions from psychology and sociology, as well as in the field of neurology, which gave rise to neuroeconomics, allowed for the adaptation and change of traditional economic decision-making theories, based only on economic rationality, in the wake of the Cartesian dualism and Newtonian atomism, allowing for a better understanding of decision-making. It has been demonstrated in previous studies that the currently most relevant element for customer approval and loyalty to their main banking institution in Portugal is trust. Therefore, the growth or downward trend of these two variables will be a good indicator to understand the development of customer trust in banking evolution. It has been verified that customer trust in banking and in the development of banks in the last years is not as negative as could be expected, considering all the problems that have affected this sector, mainly in Portugal. However, customer satisfaction has been declining over the past two years. A significant change in the banking activity is taking place, a different approach has been implemented, and this change may lead to a decline in customer trust.

How do Cognitive Biases affect Strategic Decision Making in SME’s and How can they Avoid their Mistakes made Due to such Biases

The field of behavioural economics is an emerging area of study which has answered various questions that revolve around core economic problems. Therefore, it becomes essential to look into strategic decision making in small and micro enterprises through a behavioural perspective since such enterprises are run by individuals and there is an absence of a decision making body that in turn leads to flawed decision making. This paper examines biases and heuristics that affect entrepreneurial decision making across various lines in the SME sector. Biases such as the status quo bias, the hyperbolic discounting bias and the hindsight bias in particular are discussed in this paper. The paper proposes a specified solution set for every bias to negate their effects, and also specifically talks about the assumption of rationality and the framework of behavioural biases that leads to flawed decisions.

Nudging Health Care Providers’ Adoption of Clinical Decision Support: Protocol for the User-Centered Development of a Behavioral Economics–Inspired Electronic Health Record Tool

The improvements in care resulting from clinical decision support (CDS) have been significantly limited by consistently low health care provider adoption. Health care provider attitudes toward CDS, specifically psychological and behavioral barriers, are not typically addressed during any stage of CDS development, although they represent an important barrier to adoption. Emerging evidence has shown the surprising power of using insights from the field of behavioral economics to address psychological and behavioral barriers. Nudges are formal applications of behavioral economics, defined as positive reinforcement and indirect suggestions that have a nonforced effect on decision-making. Our goal is to employ a user-centered design process to develop a CDS tool-the pulmonary embolism (PE) risk calculator-for PE risk stratification in the emergency department that incorporates a behavior theory-informed nudge to address identified behavioral barriers to use. All study activities took place at a large academic health system in the New York City metropolitan area. Our study used a user-centered and behavior theory-based approach to achieve the following two aims: (1) use mixed methods to identify health care provider barriers to the use of an active CDS tool for PE risk stratification and (2) develop a new CDS tool-the PE risk calculator-that addresses behavioral barriers to health care providers' adoption of CDS by incorporating nudges into the user interface. These aims were guided by the revised Observational Research Behavioral Information Technology model. A total of 50 clinicians who used the original version of the tool were surveyed with a quantitative instrument that we developed based on a behavior theory framework-the Capability-Opportunity-Motivation-Behavior framework. A semistructured interview guide was developed based on the survey responses. Inductive methods were used to analyze interview session notes and audio recordings from 12 interviews. Revised versions of the tool were developed that incorporated nudges. Functional prototypes were developed by using Axure PRO (Axure Software Solutions) software and usability tested with end users in an iterative agile process (n=10). The tool was redesigned to address 4 identified major barriers to tool use; we included 2 nudges and a default. The 6-month pilot trial for the tool was launched on October 1, 2021. Clinicians highlighted several important psychological and behavioral barriers to CDS use. Addressing these barriers, along with conducting traditional usability testing, facilitated the development of a tool with greater potential to transform clinical care. The tool will be tested in a prospective pilot trial. DERR1-10.2196/42653.

The application of eye tracking and artificial intelligence in contemporary marketing communication management

Purpose: Paper aims to fill the cognitive gap regarding the role, importance and potential of integrating eye tracking research and artificial intelligence. The main goal of the work was to design a proposal for the synergistic use of eye tracking and artificial intelligence for marketing communication management. Design/methodology/approach: To achieve the planned goal and answer the research questions, methods of systematic literature review, online content analysis, expert interviews and pilot eye tracking studies using the Gazepoint GP3 device and Gazepoint Analysis V6.9.0 software were used. The considerations are conducted in the field of behavioral economics. Findings: During the discussion and analysis of various aspects related to the use of eye tracking, artificial intelligence and neuro research in the context of marketing communication management, the following was established: the importance, applications and synergy of eye tracking and AI in marketing communication; the future of new technologies in marketing; key benefits, challenges and potential of the tools discussed, with particular emphasis on the need for their responsible use along with continuous development in this field. Research limitations/implications: Suggestions for future research on the issues discussed include: ethics and privacy; technological limitations; future dynamics changes. Suggestions for future research include broader analysis of user experience, integration of methods with other technologies, longitudinal research on the impact of AI-generated content personalization, measurement of consumers' emotional engagement. The indicated research areas may contribute to better use of technology in marketing and expand knowledge about non- declarative consumer behavior. Originality/value: The value of the article lies in providing conclusions and practical recommendations as well as identifying areas for further research, which may contribute to a better understanding and use of eye tracking, AI and neuro research in the field of marketing. The entire research project allowed for the design of a proposal for the synergistic use of eye tracking and artificial intelligence for marketing communication management. The article may be valuable for marketing specialists, researchers, students and people interested in the use of modern technologies in marketing. Thanks to its comprehensive perspective, it can be a guide for people interested in introducing these technologies into marketing practice. Keywords: neuromarketing, eye tracking, artificial intelligence, marketing communication. Category of the paper: Research paper.

Motivational Failures in the Personnel Management System

The subject of the research is the methods and tools used to assess the influence of sociological and psychological factors on the labor behavior of personnel. The purpose of the work is to identify the impact of basic motivational failures in the labor process on the actualization of negative economic consequences of the development and functioning of personnel management systems. The paper focuses on the diagnosis of predisposition to motivational failures on the part of certain categories of personnel and possible ways of eliminating their actualization in the personnel management system of the organization. The methodological basis of the research was the theory of the motivational complex of labor activity, within the framework of which, for the first time in world practice, the question was raised about the possible conscious commission of illogical actions by the organization's personnel and their decision-making that are not beneficial from the point of view of economic determinism for both the organization as a whole and for its individual employees. To solve more specific aspects of scientific research, tools such as the M. Lusher color test and the main provisions of the theory of accentuation of labor behavior, which are not typical of traditional economic research, were used. Conclusions are drawn that the existence of motivational failures is caused by a number of factors of an economic, sociological and psychological nature that lend themselves to logical explanation, and are not the result of low professional qualifications of personnel or their weak commitment and loyalty to their organization. Such negative phenomena of personnel, often unexpected in their manifestation and significantly reducing the effectiveness of economic decisions, can be successfully dealt with if the heads of organizations have sufficient developed professional competencies in the field of behavioral economics, sociology and labor psychology.

The Effects of Marital Status on Rational Modern Consumer Behaviors in the Framework of Behavioral Economics: The Case of Kocaeli

İktisat biliminin inceleme konusu olan tüketici davranışları üzerinde psikolojik faktörlerin etkili olduğu görülmektedir. Tüketicilerin satın alma karar süreçlerine etki eden bu psikolojik faktörler iktisat bilimi içinde yeni bir alanın oluşmasını sağlamıştır. İktisat-psikoloji ilişkisi sosyal bilim dallarının birlikte ele alınarak incelenmesine zemin hazırlamıştır. Bu yeni perspektif davranışsal iktisat olarak kavramsallaştırılmıştır. Davranışsal iktisat, iktisadi hayatta bireylerin davranışlarının anlamlandırılmasına ve açıklanamayan kısımların gerçek sebepleriyle birlikte ortaya konmasını sağlamaktadır. Amaç - Kocaeli’de yaşamını sürdüren evli ve bekâr tüketicilerin tüketim eğilimlerinin açıklanması amaçlanmaktadır. Yöntem/Metodoloji/Dizayn- Bu çalışmada bir anket uygulaması yapılmıştır. Anket soruları literatür incelemeleri ile evli ve bekâr tüketicilerin tüketim alışkanlıkları dikkate alınarak hazırlanmıştır. Sonuçlar- Tüketici davranışlarında psikolojik faktörlerin etkisinin araştırılmasıyla yeni bir alan olarak doğan davranışsal iktisat, ana akım iktisadi anlayışın katı duruşunun esnek bir hal almasını sağlamıştır. Tüketicilerin tüketim kararlarını verirken medeni durumları bu kararlar üzerinde etkili olmaktadır. Bekâr tüketiciler bir tüketim eğilimine rasyonel tavır sergilerken evli tüketicilerin aynı tüketim eğilimine farklı bir tavır sergilediği görülmektedir. Tam aksi bir şekilde bekâr tüketiciler bir tüketim kararında irrasyonel davranırken evli tüketicilerin rasyonel davranış sergileyebileceği tespit edilmektedir.

APPLYING BEHAVIOURAL ECONOMICS TO THE PUBLIC AND PRIVATE SECTORS

Marine Natsvaladze
 Ivane Javakhishvili Tbilisi State University
 Georgia
 https://orcid.org/0000-0002-7635-8565
 
 The Covid-19 pandemic has led to unprecedented changes in people's social and economic behavior, They had to struggle to maintain their health and earn a living at the same time. Behavioral economics has been found to be highly relevant in explaining the behavior of economic agents during the Covid-19 pandemic, under the "new normal" conditions to explain real human economic behavior [9].
 Behavioral economics is an important paradigm in modern economics, and it has revolutionized the standards of economic theory and instead of rational decisions, it offers more realistic alternatives for decision-making and management - any decision should be based not on rational and mathematical calculations, but on the study of human behavior patterns, the analysis of causes and the awareness of whether how people think and how we can influence their choices by changing the content or environment during the decision-making process, without restricting the choices (Using "Nudge Theory" of behavioral economics).
 The Covid-19 pandemic has raised several questions about how market participants are responding to the global pandemic. The Covid-19 pandemic was able to spread rapidly around the world, indicating that extreme measures were needed to bring it under control. The policies of governments around the world have had a significant negative impact on the economy. Taking into account these factors, the issue of studying the economic behavior of market participants in the conditions of the pandemic was put on the agenda.
 Making real economic decisions based on rationality seems to be extremely difficult for all economic agents under the conditions of the Covid-19 pandemic. Therefore, when economic agents are faced with the extremely difficult situation created by the pandemic, rational economic decisions are likely to become ineffective or inefficient, and therefore the principle of "bounded rationality" described in the field of behavioral economics may become ineffective in the implementation of strategies to mitigate the consequences of the pandemic [15].
 The article discusses the use of the "Nudge Theory" in the public and private sector to implement incentives in economic decision-making.
 
 The purpose of the study: To consider a new economic policy using the approaches of behavioural economics and give recommendations on its development and implementation in the public and private sectors. Studying scientific experiments and articles by leading scientists, adapting the main conclusions, analysing the implications for policy implementation.
 
 Methodology/approach: Analysis of field data and review of laboratory experiments based on a bibliographic review of behavioral economics.
 
 Scientific news: Author's assessments or recommendations.
 
 Practical value: For new courses and disciplines.
 
 Keywords: Behavioral Economics, Economic Policy, "Nudge Theory", Incentives, Economic decision-making.