Behavioral Economics 1.0

Simon, Kahneman, Thaler & Co.: People behave boundedly rationally in a systematic manner. What effects does this have?

Individual decisions: Can people’s behavioral patterns be systematically predicted?

Why do we not stop smoking? Why do people still drive under the influence of alcohol? Why do we eat too much? Why do we harm others? Why are we willing to harm others? Why do we act differently at home than at work? Why do people have trouble saving? Why do we overestimate our own abilities and those of others? Why are we unable to assess probabilities accurately?

Economic consulting without a deeper knowledge of the relevant behavioral patterns of customers, employees, suppliers, and other stakeholders is impossible. For this reason, the consulting of FehrAdvice & Partners AG is based on the newest knowledge from behavioral economics – behavioral economics research.

The four drivers of human behavior are:

  • Cognitive abilities and distortions
  • Willpower and time preferences
  • Emotional abilities and social preferences
  • Identity and social norms

Test your rationality