BEHAVIORAL ECONOMY: THE ESSENCE AND CONCEPTUALIZATION OF THE CONCEPT
Abstract
The article analyzes the approaches to determining the nature of behavioral economics. Appearance in the economic theory of such a direction as "behavioral economics" can rightly be considered one of the most significant and interesting developments in the development of economic science over the last few decades. The results of the study of the concept of behavioral economy by a number of domestic and foreign scientists are presented. The main areas of scientific knowledge of behavioral economics are selected according to the psychological and economic approach. The evolution of the views of the scientific community regarding the concept of rationality of economic agents is traced. The concepts of "behavioral economy" and "behavioral finance" are demarcated and their relationship is shown. Behavioral finance is a new area of financial science whose main task is to explain specific features of financial decision making, based on a combination of theoretical foundations psychology, as well as economic and financial theory. The main factor influencing the formation and a further development of behavioral finance is the inability of the neoclassical theory to explain the series anomalies resulting from the entity's irrational decisions. In today's context, research into this industry is extremely important because behavioral finance can explain the irrationality of an entity's behavior when making financial decisions, as well as assessing the performance of markets. Due to the growing trend in the practical application of behavioral finance, so does the relevance of the study of the theoretical aspect of this area of financial science. The basic theoretical components of behavioral finance are revealed. The main factors influencing the emergence of behavioral finance are identified and systematized. The essence of the basic categories that are used to identify and explain the peculiarities of irrational behavior of economic agents in decision making is revealed. The implementation of any financial technology must take into account the behavior of market players. Behavior that can be both rational and irrational and an important factor in the implementation of certain technologies.
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