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The theory also involves economic relationships—the cost-benefit analysis occurs when each party has goods that the other parties value. [1] Social exchange theory suggests that these calculations occur in romantic relationships , friendships, professional relationships , and ephemeral relationships as simple as exchanging words with a ...
Behavioral economics is the study of the psychological, cognitive, emotional, cultural and social factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by classical economic theory. [ 1][ 2] Behavioral economics is primarily concerned with the bounds of rationality of economic agents.
Psychological pricing (also price ending or charm pricing) is a pricing and marketing strategy based on the theory that certain prices have a psychological impact. In this pricing method, retail prices are often expressed as just-below numbers: numbers that are just a little less than a round number, e.g. $19.99 or £2.98. [ 1]
Behavioral game theory seeks to examine how people's strategic decision-making behavior is shaped by social preferences, social utility and other psychological factors. [ 1] Behavioral game theory analyzes interactive strategic decisions and behavior using the methods of game theory, [ 2] experimental economics, and experimental psychology.
In psychology and behavioral economics, the endowment effect, also known as divestiture aversion, is the finding that people are more likely to retain an object they own than acquire that same object when they do not own it.
Neuroeconomics. Neuroeconomics is an interdisciplinary field that seeks to explain human decision-making, the ability to process multiple alternatives and to follow through on a plan of action. It studies how economic behavior can shape our understanding of the brain, and how neuroscientific discoveries can guide models of economics.
Experimental economics is the application of experimental methods [1] to study economic questions. Data collected in experiments are used to estimate effect size , test the validity of economic theories, and illuminate market mechanisms.
Web-based experiments. A web-based experiment or Internet-based experiment is an experiment that is conducted over the Internet. In such experiments, the Internet is either "a medium through which to target larger and more diverse samples with reduced administrative and financial costs" or "a field of social science research in its own right." [1]