BEHAVIORAL ECONOMICS IN MODERN RESEARCH OF REGIONAL AND LOCAL DEVELOPMENT: THEORETICAL ASPECTS
Abstract. In terms (conditions) of socio-economic crisis, there are changes in the algorithms of acceptance of the investment, financial, management, and other decisions at various levels, which requires the emphasis on the patterns of behavior of participants in financial and economic processes in...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
FINTECH Alliance LLC
2021-02-01
|
| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/3210 |
| Summary: | Abstract. In terms (conditions) of socio-economic crisis, there are changes in the algorithms of acceptance of the investment, financial, management, and other decisions at various levels, which requires the emphasis on the patterns of behavior of participants in financial and economic processes in conditions of risk and uncertainty. The article aims to review the key postulates of behavioral economics, substantiate the possibility and feasibility of applying the theoretical foundations of behavioral economics as the latest model of the irrational behavior of financial and economic relations in practice management at regional and local levels.
The theoretical foundations of behavioral economics are revealed, the preconditions of origin (scientific bases, technological level, socio-economic bases) and stages of formation are determined. The interdisciplinary nature of behavioral economics as a science-based on the provisions of economics, psychology, sociology, neurobiology, and studies of socio-economic problems using non-traditional methods and approaches is proved. The study found that the growing trend of the practical application of behavioral economics at the regional and local levels is associated with the possibility of taking into account, except objective factors, irrational behavior of participants in financial and economic processes in conditions of risk and uncertainty. Behavioral differences between «economic man» and Humans are substantiated. It is established that people have such behavioral features as presumed irrationality; limited cognitive skills, emotions, morals, and social norms; limited selfishness; inconsistency (variability) of preferences. The expediency of studying economic relations at the regional and local levels on the basis of behavioral economics is justified by the possibility of explaining the abnormal behavior of economic agents in conditions of uncertainty and risk, which encourages the search for new behavioral strategies of financial and economic relations.
Keywords: behavioral economy, regional development, local development, behavioral effects, behavioral patterns.
JEL Classification A 11, A12, B5
Formulas: 0; fig.: 2; tabl.: 0; bibl.: 17.
|
|---|---|
| ISSN: | 2306-4994 2310-8770 |