Behavioral economics

Behavioral economics

            Behavioral economics is intuitive that does not encompass economic concepts. Its intrinsic control of matters and issues of the business, and involve law and politics as well.  Freedom of choice is part of the economics that makes the changes in operating economic matters. Studying most of the perspectives of economics expose preference behavioral and preserved scarce cognitive emotions of the explicit or implicit concepts. People have countless options or choices during the purchasing of products. The effectiveness of the product proposition encourages the preference for the people to make a choice. The existing literature analysis implicates the mistakes the marketer place on the production procedure to optionally delegate the choice and control intuitive control (PORTER, 3). Behavioral economics is the optimal choice that enables the consumer to recognize the satisfactory by making multiple choices intuitively on the wide range of the market product. The behavioral economics turns the ideas of the human in a solely way of making choices in their rational self-interest based on the specific economic factors.

People consider making choices according to their economic standards and demands. The amount of money a person has illuminates the idea of making a choice. The rationale of choosing a product refers to the behavioral economics on dismissing unconsidered choice of product as the solely best choice.

Impact on the Economics

Currently, the behaviors of economics is based on design issues that intervene in the customer, such as loans and drug usage, that may fuel economic credit increment among different groups of people. Credit availability encourages the easy choice of the economic plan and leads to intervention that maybe not irrational (Sherman, Pp. 2-4). Decision-making may not be easy in the factor consideration on choosing due to the availability of credit in the market. Moreover, credit cards relate to different substantial costs and maybe having the overall welfare evaluation. Intervention to behavioral consumers corrects the decision making across the options during purchasing. This factor imposes a substantial cost that associate with the accessibility of information about the choices (Sherman, Pp. 2-4). Defaulting the spending and saving affects economic planning because it may gear towards welfare-improvement. Furthermore, inaccurate perception of protecting unplanned buying is a complex decision that worsens the behavior of customers (Prado, Pp3-4). Intervention undermines the ecological rationality within the market and requires consumers to perceive accurately to avoid market illusions and correct the saving defaults.

Consideration of understanding behavioral economics initiates loss aversion by avoiding significant losses in the future. Economics considers fundamental planning due to the existence of choice overload. The economics behavioral presents cognitive freedom and consider understanding how to correct the belief that can be dismissed from the poor people. It’s crucial to understand that this behavior increase is saving defaults, and require policies to control the accountability and lower this impact (GAL, 4). It sets the background to allow the government to take roles in the economy and evaluate the effects of the behavior and develop a loss evasion system (Bourne 1). Moreover, government incentives are available and yet affecting the behavior negatively. Most people cannot make the correct choices due to multiple choices availed in the market (Moran and Michael 140). The impacts of the behavior economics reward the influential matters in the economy by presenting the best approach to all involved groups and individuals (Bourne 1). This factor increases the inefficiency of planning and presents an intrusive argument towards the loss aversion. Therefore, economic, behavioral affect the economy in different ways and poverty increases due to poor spending decisions.