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Economic Agents’ Behaviors During the Coronavirus Pandemic: Theoretical Overview and Prospective Approach

Author

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  • Rim JEMLI

    (University of Sfax
    University of Sfax)

  • Nouri CHTOUROU

    (University of Sfax)

Abstract

In economics, several theories have focused on the study of decisions made by economic agents. Recent branches in economics have even revealed some controversies with the theoretical findings of the basic neoclassical model. Indeed, the growing uncertainty characterizing certain contemporary risks leads to various biases in the economic agents’ behaviors. The relevance of decisions under uncertainty calls into question the assumption of absolute rationality of the neoclassical economics. In this context, the COVID-19 pandemic is causing an unprecedented human crisis. This paper aims to provide a theoretical examination of the behaviors of economic agents faced with uncertainty and catastrophic situations. In its first contribution, this study provides a theoretical overview of behaviors under uncertainty. In its second contribution, the paper highlights the need for a prospective approach in the face of the coronavirus pandemic. Hence, we delve into the theoretical foundations of a prospective approach to health. All around the world, the COVID-19 pandemic approved the need for rethinking the preparation of “public health” systems to deal with pandemics. A good response to the present and a better preparation for the future require a revision of behaviors in terms of international cooperation and monitoring of Sustainable Development Goals.

Suggested Citation

  • Rim JEMLI & Nouri CHTOUROU, 2023. "Economic Agents’ Behaviors During the Coronavirus Pandemic: Theoretical Overview and Prospective Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 3818-3846, December.
  • Handle: RePEc:spr:jknowl:v:14:y:2023:i:4:d:10.1007_s13132-022-01027-5
    DOI: 10.1007/s13132-022-01027-5
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    References listed on IDEAS

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    1. Kunreuther, Howard & Meszaros, Jacqueline & Hogarth, Robin M. & Spranca, Mark, 1995. "Ambiguity and underwriter decision processes," Journal of Economic Behavior & Organization, Elsevier, vol. 26(3), pages 337-352, May.
    2. 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..
    3. Fabio Milani, 2021. "COVID-19 outbreak, social response, and early economic effects: a global VAR analysis of cross-country interdependencies," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 223-252, January.
    4. Rim Jemli & Nouri Chtourou & Rochdi Feki, 2010. "Insurability Challenges Under Uncertainty: An Attempt to Use the Artificial Neural Network for the Prediction of Losses from Natural Disasters," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(1), pages 43-60.
    5. Rim Jemli & Nouri Chtourou & Rochdi Feki, 2010. "Insurability Challenges Under Uncertainty: An Attempt to Use the Artificial Neural Network for the Prediction of Losses from Natural Disasters," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 57(1), pages 43-60, March.
    6. Goes, Anne & Skees, Jerry R., 2003. "Financing Natural Disaster Risk Using Charity Contributions And Ex Ante Index Insurance," 2003 Annual meeting, July 27-30, Montreal, Canada 22188, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Micaela Pinho & Sofia Gomes, 2024. "Unveiling the Impact of Personality in Lifestyle Solidarity: An Exploratory Study of the Effects of Dispositional Optimism and Risk Orientation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 15833-15859, December.

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    More about this item

    Keywords

    Behaviors economics; Uncertainty; Knowledge and decision-making; COVID-19 Crisis; Health; International cooperation;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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