Description
Instructions
Behavioral economics is a relatively new field that attempts to explain behavioral biases that the standard economic theory could not explain. Behavioral economics assumes that consumers are often irrational due to limited cognitive capability and therefore often make choices that are not optimal. Behavioral economics also assumes that decision-making can be altered through intervention to help consumers optimize their choices. These assumptions support the idea that managerial decision-making often involves uncertainty.
For this assignment, you will use the CSU Online Library (or another source) to locate an article on behavioral economics that is published in a peer-reviewed journal and write a critical review of the article. The article must be at least five pages in length, and it must be no more than five years old.
Include the following in your review.
Summarize the article with emphasis on the author’s opinion about behavioral economics.
How does the author compare behavioral economics with the standard economic theory of consumer choice?
What did the article say about loss aversion, framing, anchoring, and mental accounting?
What information was provided concerning the application of behavioral economics in business and government?
How did the author address the implications of uncertainty that often exist in managerial decision-making?
Your review must be a minimum of two pages in length. Use APA style when writing your review, including citations and references for sources used. You must provide a title page and a reference page, which will not be included in the two-page minimum length