Behavioral Economic Theory Explains Consumer And Employee Behaviors

Behavioral Economic Theory Explains Consumer And Employee Behaviors
Title Behavioral Economic Theory Explains Consumer And Employee Behaviors PDF eBook
Author Johnny Ch Lok
Publisher
Pages 158
Release 2020-02-29
Genre
ISBN

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How to apply behavioral economic method to contribute to predict every country's labor market changing behavior ?Instead of applying behavioral economic method to predict every consumer individual consumption effort. Behavioral economic method can be also be applied to predict every country's labor market changing behavior. Particularly, how salary clerical workers or low wage labor workers should move from one type of job to another based on these factors. They include as below: Their intrinsic motivation and how their levels of effort would change after this movement, investigates the effects of income security on social preferences in labor market changing behavior, and how cooperation in social contribution is affected when income security is guaranteed, how to predict the role of positional externalities on conspicuous consumption and how would change the incentive to influence consumption. So, it seems that general labor market job changing behaviors will not influenced by external economic environment better or worse changing factor, or salary changing factor etc. different environmental condition changing factors influence to employees' job changing. Generally, employee's job changing behavior is more influenced to persuade who changes job by himself/herself intrinsic motivation negative emotion influence mainly.How to apply motivation crowding theory to predict labor productivity? One of the main challenges of economic theory is to find what are the optimal incentives that increase productivity of labors. The standing point is usually extrinsic incentive be it is form of monetary compensations for high effort or fine for low effort. It is a kind method of reward or punishment to increase or decrease number of productivity to every labor. But it can only raise short term number of productivity in possible and it can not guarantee high quality of productivity. So if one employer wants a labor to do more of an activity or with a higher quality, consider paying the labor for working hard on punishing whom if for providing a low level effort. This idea is that people do not like to work, and therefore they used some sort of compensation for doing a specific activity, and that the more they are paid the harder, they will work. So, payment better compensation is only beneficial to encourage labors to do one specific task or activity in short term. This method can not be suitable to rise long term beneficial productivity and high level quality of production or excellent performance in long term and it can only keep in short term raising productivity and high level quality of production or excellent performance benefits.Consider paying the labor for working hard on punishing whom if for providing a low level effort. This idea is that people do not like to work, and therefore they used some sort of compensation for doing a specific activity, and that the more they are paid the harder they will work. So, payment better compensation is only beneficial to encourage labors to do one specific task or activity in short term. This method can not be suitable to raise long them beneficial productivity and high quality of products.However, economists would argue that, is a labor has high intrinsic motivative to perform a task, who will provide a high level of effort without compensation by himself/herself but an even higher level of effort of whom is compensated. If a labor does not have any intrinsic motivation to perform a task or an activity, who will provide no effort or a low effort of whom. There is no compensation, but who will increase this level of effort of an extrinsic incentive is implemented.

Behavioral Economic Method Predicts Consumer And Employee Behavior

Behavioral Economic Method Predicts Consumer And Employee Behavior
Title Behavioral Economic Method Predicts Consumer And Employee Behavior PDF eBook
Author Johnny Ch Lok
Publisher
Pages 408
Release 2019-09-24
Genre
ISBN 9781695362888

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I shall give reasons to explain as below: As Jim, P. & Brendan. M. (2013) indicated who had ever been experiencing failure to do their businesses. Although, they had lost a million dollars, but they felt that they can be taught to learn undiscovered knowledge to know how to do their businesses successful by their wrong judgement and decision learning experience. They explained that " in ll risk taking, speculation, business ventures, entrepreneurial activities, it is the loss side on which you must focus first. This is even true for gambling, the gambler determines how much he's willing to bet, and loss, before the game is played. He doesn't wait for the game to end and then let the croupier or dealer assign his wager for him. How do you determine the downside, and how do you control or minimize it? With objective decision making and a plan that has as its starting point the stop-loss parameters"Hence, it explains any business will have under-level productive efficiencies and low consumption desire business risk. However, to any one entrepreneur, who needs to know it is one game between the himself/herself and whose clients. They also need to know with objective decision making and a plan that has as its starting point. Hence, I assume that if the entrepreneur has wrong decision to cause under-level productive efficiency, it is possible that, due to there is no enough employee number to manufacture the product or many employees are not skillful to manufacture all product in normal time or many employees are lazy etc. different factors to cause under-level productivities. However, when they discover their productivities are very low to compare similar competitors their employees' productivities and efficiencies. Then, they can attempt to find what factor(s) to cause low productivities and low efficiencies. it is possible that any one among of these factors case. They include many employees' lazy to influence low productivities or there is no enough employee number or many employees are not skillful to manufacture their products in production process. Hence, wrong decision or plan is not represent failure. Otherwise, it can give chance to let the entrepreneur to learn whether what the factor(s) is (are) to cause low productivities and low efficiencies in whose product manufacturing process.

Judgement the Difference Between Behavioral Economy and Psychological Methods to Predict Consumption

Judgement the Difference Between Behavioral Economy and Psychological Methods to Predict Consumption
Title Judgement the Difference Between Behavioral Economy and Psychological Methods to Predict Consumption PDF eBook
Author Johnny Ch LOK
Publisher
Pages 519
Release 2017-07-30
Genre
ISBN 9781521974322

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The second part concerns how to explain what behavioral economy means and how to apply behavioral economy method to predict consumer behavior. Behavioral economics can provide more realistic psychological foundations. This part is intended to explain why consumer behaviors and economy has close relationship and apply economic concept to explain how the consumer chooses to do whose consumption of decision. In second part, it shall indicate how the process of behavioral economic field develops, then I shall show what methods are used to measure behavioral economy. Next, I shall indicate what the main two categories of behavioral economy are as well as I shall explain what risky and uncertain outcomes of individual behavior economic theories are as well as what behavioral game theory is. Finally, I shall explain how policy makers or decision makers can apply behavioral economy concept to do whose policy decision as well as I shall also indicate why behavioral economy and psychology which has close In summary, standard economic theories assume that consumers are rational and self- interested. However, behavioral economic theories assumes that psychology shows who are not rational usually. I shall indicate how consumer's psychological decision to choose their behavioral consumption in actual life environment for underground train and Disney entertainment theme park and University and unground train transportation and environmental protection businessmen etc. enterprises. Some consumption of these enterprises evidences also show that consumer individual irrationality , these enterprises have predictable features in these enterprises consumption situation I shall use these enterprises to explain why behavioral economy can make economic predictions more accurate by using these enterprises' consumption evidences on their predictable irrational behavior to these enterprises. Although, these global enterprises' market competition is serious, consumers may be expected to learn to reduce irrational behavior over time, these processes may not work well and may take. You can read these underground train and Disney entertainment theme park and University and unground train transportation and environmental protection businessmen etc. enterprises to make judgement why behavioral economic model is more accurate to predict consumer behavior to compare standard economic model.In this part, I shall indicate underground train and Disney entertainment theme park and University and unground train transportation and environmental protection businessmen etc. enterprises to explain how which can apply psychological methods to predict which client's preferable behavioral choice to achieve economic benefits more easily. Thus, if company or individual businessman can predict labor psychology or client psychological consumption behavior. Then, which can have more confidence to attract more clients or reduce labor turnover. This book is suitable to any economists or policy makers or individual consumption makers or students or businessmen who have interest to learn how to apply behavioral economy methods to judge to do the most reasonable or the most right economic activities to achieve economic benefit in everyday life.Finally, in part three, I shall explain why to apply either behavioral economy or psychological method to predict as above sample cases which is more suitable to predict consumer behavior.I wrote this book for several reasons. I want to give my opinions to let businessmen to know how to apply psychological method or behavioral economic method to predict consumer behavior. Psychological method prediction is concentrated on consumer individual emotion, such as between salespeople and customers contact in one shop. Otherwise, behavioral economic method prediction is concentrated on serving consumers in public service industry, e.g. education, transportation, entertainment etc. public service businesses.

How Behavioral Economic Method Explains and Predicts

How Behavioral Economic Method Explains and Predicts
Title How Behavioral Economic Method Explains and Predicts PDF eBook
Author Johnny Ch LOK
Publisher
Pages 523
Release 2019-06
Genre
ISBN 9781071187173

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Will one consumer feel difficult to make consumption choice or one employee feel pressure to work when the worker works in the company's high pressure productive environment or the consumer makes difficult purchase choice in high pressure consumption environment? Will time pressure bring motivation to the consumer purchase decision or the employee working efficiency? It depends on some factors to either cause time pressure working environment or raise the employee individual efficiency , or time pressure consumption environment can either encourage the consumer purchase decision or discourage the consumer purchase decision . I shall explain as below:What does efficiency mean? Due to economic problem is a scarcity of resource, efficiency is concerns with the optimal production, consumption environment. For time pressure consumption situation example, e.g. supermarket shopping counter check out purchase queue waiting time pressure, cinema purchase ticket queue waiting time pressure, restaurant queue waiting booking table time pressure etc. different consumption pressure time waiting situation. For time pressure woring situation example, e.g. supervisor's demand tasks finishing on time before the employee leaves the office on the day, then the supervisor's demand will cause the employee feels time pressure to do all tasks on time, otherwise, he needs to work overtime, even no extra allowance compensation to his extra time loss, or the employee needs to do another employee's tasks , due to he is absent on the day. However, this situation can be called economically efficient production or consumption if: no one can be worse off, no additional output can be obtained, without increasing the amount of inputs, production proceeds at the lowest possible per unit cost. For these economic efficient consumption situation example, the consumer has much time to wait, the shop has less different styles of products to let them to spend time to choose in the shop's shelf. However, these definitions of efficiency are not exactly equivalent, but all they are caused by the idea that a system is efficient if nothing more than be achieved given the resources available. On time pressure working environment influence aspect, Time pressure working environment may bring efficiency, but time pressure working environment may also bring inefficiency, e.g. employing workers who are not necessary for the productive process. For example, a firm may be more concerned about the political implications of making people redundant than getting rid of surplus workers, or lack of management control, if a firm does not have supervision of workers, then productivity may tall as workers talk it easy, not finding cheapest suppliers, a firm may continue to source raw materials from a high cost supplier rather than look for cheaper raw materials to be supplied to let workers to work in one short time task finishing environment. Then, they may feel short time task finishing pressure to bring inefficiency production result.I shall indicate efficient production and efficient consumption situations as below:

Behavioral Economics and Its Applications

Behavioral Economics and Its Applications
Title Behavioral Economics and Its Applications PDF eBook
Author Peter Diamond
Publisher Princeton University Press
Pages 331
Release 2012-01-12
Genre Business & Economics
ISBN 1400829143

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In the last decade, behavioral economics, borrowing from psychology and sociology to explain decisions inconsistent with traditional economics, has revolutionized the way economists view the world. But despite this general success, behavioral thinking has fundamentally transformed only one field of applied economics-finance. Peter Diamond and Hannu Vartiainen's Behavioral Economics and Its Applications argues that behavioral economics can have a similar impact in other fields of economics. In this volume, some of the world's leading thinkers in behavioral economics and general economic theory make the case for a much greater use of behavioral ideas in six fields where these ideas have already proved useful but have not yet been fully incorporated--public economics, development, law and economics, health, wage determination, and organizational economics. The result is an attempt to set the agenda of an important development in economics--an agenda that will interest policymakers, sociologists, and psychologists as well as economists. Contributors include Ian Ayres, B. Douglas Bernheim, Truman F. Bewley, Colin F. Camerer, Anne Case, Michael D. Cohen, Peter Diamond, Christoph Engel, Richard G. Frank, Jacob Glazer, Seppo Honkapohja, Christine Jolls, Botond Koszegi, Ulrike Malmendier, Sendhil Mullainathan, Antonio Rangel, Emmanuel Saez, Eldar Shafir, Sir Nicholas Stern, Jean Tirole, Hannu Vartiainen, and Timothy D. Wilson.

Advances in Behavioral Economics

Advances in Behavioral Economics
Title Advances in Behavioral Economics PDF eBook
Author Colin F. Camerer
Publisher Princeton University Press
Pages 768
Release 2004
Genre Business & Economics
ISBN 0691116822

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Today, behavioral economics has become virtually mainstream.

Misbehaving: The Making of Behavioral Economics

Misbehaving: The Making of Behavioral Economics
Title Misbehaving: The Making of Behavioral Economics PDF eBook
Author Richard H. Thaler
Publisher W. W. Norton & Company
Pages 502
Release 2015-05-11
Genre Business & Economics
ISBN 0393246779

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Winner of the Nobel Prize in Economics Get ready to change the way you think about economics. Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans—predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth—and change the way we think about economics, ourselves, and our world. Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio, selling basketball tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by economists. In other words, we misbehave. More importantly, our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make better decisions in our lives, our businesses, and our governments. Coupling recent discoveries in human psychology with a practical understanding of incentives and market behavior, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioral economic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV game shows, the NFL draft, and businesses like Uber. Laced with antic stories of Thaler’s spirited battles with the bastions of traditional economic thinking, Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policy makers are both profound and entertaining. Shortlisted for the Financial Times & McKinsey Business Book of the Year Award