In my studies about gamification I sure have noticed the very importance of learning behavioral economics. So I've started reading the basic books again and very carefully and this time from a practical point of view. This is an introductory presentation I've used to talk with some of my colleagues about the subject.
4. โข Fully Rational
โข Master of Optimizing
โข Spends time to decide correctly
โข Selfish
โข Very Aware of Future and forward planning
DO THEY EXIST IN OUR WORLD?
IntroducingEcons
5. Economics Theory
Considers every human being as an Econ!
and
With the full information needed to decide.
SOME MAJOR DIFFERENCES
Letโs see why weโre not
6. Problems with Optimizing
Hard to solve
for ordinary
people
01
Biased choices
(human biases,
cognitive, โฆ)
02 03
Factors that
optimization
models leave
out
7. โข We have cognitive biases.
โข We use mental short cuts.
โข Humans are emotional beings.
WEโRE NOT ROBOTS YET FOR SURE
Rationality
9. โข People have social preferences.
โข There is social norm.
โข Network effect.
โข People learn socially.
โข People are not always self-interested.
HUMANS ARE SOCIAL ANIMALS
SocialAnimals
10. โข Is not the only motivation for people.
โข Sunk cost affects us.
โข Money is not fungible in real world.
THERE IS BUDGET PLANNING.
Money / Utility
11. โข We decide quickly.
โข Humans mostly use heuristic and rules of thumbs.
โข Risk-averse for gains.
โข Risk-seeking for losses.
โข People use Mental-accounting.
CAN YOU SOLVE A PROBLEM WHERE AN ECONOMIST HAS SPENT YEARS TO SOLVE?
Thinkingfast and slow
13. Is not still well-designed for macro economics!
TAKE A LOOK AT โBEHAVIORAL GAME THEORYโ
BehavioralEconomics
Itโs very useful for policy makers!