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Nudge is a concept in behavioral science, political theory and economics which proposes designs or changes in decision environments as ways to influence the behavior and decision making of groups or individuals—in other words, it's "a way to manipulate people's choices to lead them to make specific decisions".
Microfoundations are an effort to understand macroeconomic phenomena in terms of economic agents' behaviors and their interactions. [1] Research in microfoundations explores the link between macroeconomic and microeconomic principles in order to explore the aggregate relationships in macroeconomic models.
The behavioral concept of "tax salience" refers to the visibility of the tax-inclusive price and how the way taxes are displayed can influence consumer behavior. [5] It emphasizes that people are more likely to change their behavior in response to highly visible and highly salient taxes. [6]
Anthropological fieldwork has demonstrated rational behavior and complex economic choices amongst peasants (cf. Plattner, 1989:15). [4] For example, individuals in communist societies can still engage in rational utility maximizing behavior by building relationships with bureaucrats who control distribution, or by using small plots of land in ...
Using both quantitative data and qualitative sources, economic historians emphasize understanding the historical context in which major economic events take place. They often focus on the institutional dynamics of systems of production , labor , and capital , as well as the economy's impact on society, culture, and language.
This marked the beginning of a boom in atheoretical, statistical models of economic fluctuation (models based on cycles and trends instead of economic theory) that led to the discovery of apparently regular economic patterns like the Kuznets wave. [10] Other economists focused more on theory in their business cycle analysis.
Signalling started with the idea of asymmetric information (a deviation from perfect information), which relates to the fact that, in some economic transactions, inequalities exist in the normal market for the exchange of goods and services.
Together, these three concepts form the core of behavioral economics and have been used to develop more realistic models of human decision-making and behavior. By recognizing the limitations and biases that people face in their daily lives, behavioral economists aim to design policies, institutions, and choice architectures that can help people ...