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Measuring Economic Propensities

In: Neuroeconomic and Behavioral Aspects of Decision Making

Author

Listed:
  • Mariusz Doszyń

    (University of Szczecin)

Abstract

In behavioral economics there are many very interesting insights and findings. But it seems that there is a problem with the measurement of chosen aspects of behaviors. Without proper methodology it is hard to verify a hypothesis describing behavioral effects. This is why the possibility of behavior measurement based on a propensity theory is proposed. These problems are connected not only with behavioral aspects of decision making but also with the neuroeconomics. In the chapter the main features of propensity theories are discussed. A definition of propensity as well as methods useful in measuring propensities are presented. The prepared questionnaire is used to measure and analyze such economic propensities as the propensity to consume, save, invest and money storing. These propensities are tested in three ways, as declared (by respondents) propensities, as observed propensities and also as propensities deduced from preferred choices. In the last case the method consistent with the AHP (Analytic Hierarchy Process) is verified.

Suggested Citation

  • Mariusz Doszyń, 2017. "Measuring Economic Propensities," Springer Proceedings in Business and Economics, in: Kesra Nermend & Małgorzata Łatuszyńska (ed.), Neuroeconomic and Behavioral Aspects of Decision Making, chapter 0, pages 77-90, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-62938-4_6
    DOI: 10.1007/978-3-319-62938-4_6
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