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How Psychological Factors Influence Economic Decision-making, and the Implications for Policy

Year: 2023

Type: article

Abstract: Economic decision-making is often thought to be a purely rational process, with individuals making choices based on a careful analysis of costs and benefits. However, research has shown that psychological factors play a crucial role in shaping economic decisions. This paper reviews the literature on how psychological factors such as cognitive biases, emotions, and social influences influence economic decision-making. We also discuss the implications of these findings for policy-makers, highlighting the need for policies that take into account the role of psychological factors in shaping economic behavior.

Source: Journal of Accounting Research Utility Finance and Digital Assets

DOI: 10.54443/jaruda.v1i4.57

Authors: Mudasir Ahmad Sofi, Irshad Ahmad Reshi, Dr. T. Sudha

Institution: Annamalai University

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4378965330

FWCI: 2.097

Cites: 18

Cited by: 10

Related to: 10