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- Title
On the Function of Behavioral Theory and Behavioral Research in Economics.
- Authors
Katona, George
- Abstract
The article focuses on the behavioral theory and behavioral research in economics. The behavioral sciences study the actions of man or groups of men by applying the scientific method-observation, measurement, testing-to man himself. Behavioral economics is concerned primarily with the process of decision making regarding spending, saving, investing, borrowing, pricing, etc., and thus supplements the analysis of interrelationships among results of behavior which has been the traditional domain of economics. Psychological theory postulates that aspirations rise with accomplishment and that concrete and attainable rewards exert a positive stimulus on action. In view of these considerations it is not necessarily true that the larger the assets, the less will consumers save. Empirical studies, conducted for the purpose of testing derivations from both economic and psychological hypotheses showed that consumers with large initial liquid assets both saved more and dissaved more than consumers with small initial assets, and that those with private pension rights saved more than those without such rights.
- Subjects
BEHAVIORAL assessment; ECONOMICS &; psychology; ECONOMICS; PSYCHOLOGY; MACHLUP, Fritz; CONSUMERS; ASSETS (Accounting); PENSIONS
- Publication
American Economic Review, 1968, Vol 58, Issue 1, p146
- ISSN
0002-8282
- Publication type
Article