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From Economic Behaviour to Behavioural Economics

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  • Paula-Elena Diacon

    (PhD Candidate, Doctoral School of Economics and Business Administration, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

Mainstream economics postulates the existence of an economic man endowed with rational and self-interested behaviour. The aim of this article is to analyze the relevance of this attributes, since the economic behaviour is, both, a form of human action and the object of the study of economics. Moreover, we go further with some particular objectives and examine the role of behavioural economics and the way in which it relates to the traditional model. The current events on the world stage have generated heated debates in the academic world with respect to the adequacy of the analysis of the economic models to reality. Thus, the 2007 financial crisis highlighted some lacks of the neoclassical model, which still dominates the economic analysis, and sent to a reconsideration of its foundations. We found out that, through a multidisciplinary approach, behavioural economics attempts to answer many of these shortcomings, by considering a broader analysis in the study of economic phenomena. Furthermore, the article shows how this field of study can increase the explanatory power of economics by providing it a more realistic psychological basis, given that the human behaviour is not only the subject of economics, but also of psychology and of the social sciences as a whole.

Suggested Citation

  • Paula-Elena Diacon, 2014. "From Economic Behaviour to Behavioural Economics," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 1(1), pages 171-180, February.
    • Handle: RePEc:dug:actaec:y:2014:i:1:p:171-180
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/2186/2066
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    References listed on IDEAS

    as
    1. Thaler, Richard H, 1997. "Irving Fisher: Modern Behavioral Economist," American Economic Review, American Economic Association, vol. 87(2), pages 439-441, May.
    2. Paula-Elena DIACON & Gabriel-Andrei DONICI & Liviu-George MAHA, 2013. "Perspectives of economics – behavioural economics," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(7(584)), pages 27-32, July.
    3. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    4. repec:jes:wpaper:y:2012:v:4:p:296-305 is not listed on IDEAS
    5. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    6. Paula-Elena Diacon, 2012. "The Economic Transition Of Romania From A Behavioural Economics Perspective," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(3), pages 296-305, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Laure Bamière & Pierre‐Alain Jayet & Salomé Kahindo & Elsa Martin, 2021. "Carbon sequestration in French agricultural soils: A spatial economic evaluation," Agricultural Economics, International Association of Agricultural Economists, vol. 52(2), pages 301-316, March.

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