Standard Economic Model
A theoretical framework in economics that assumes individuals act rationally and seek to maximize utility, used to predict economic behavior and outcomes.
5 topics found for
“traditional economics”
Prospect Theory
A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.
Behavioral Finance
The study of how psychological influences affect financial behaviors and decision-making.
Behavioral Game Theory
The study of strategic decision making, incorporating psychological insights into traditional game theory models.
Take the Best Heuristic
A decision-making rule where individuals choose the option with the highest perceived value based on the first good reason that comes to mind, ignoring other information.