Behavioral economics

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Nobel laureate Daniel Kahneman is the founder of behavioral economics.

Behavioral Economics and Behavioral Finance are closely related fields making up a separate branch of economic and financial analysis. This field uses social, cognitive and emotional factors in understanding the economic decisions of consumers, borrowers and investors, and their effects on market prices, returns and the allocation of resources.

This area of research is moving towards the recent area of neuroscience called Neuroeconomics. Theme Zoom CEO Russell Wright has taken a keen interest in this discipline because of its relationship to heuristics and online response and its Neuromarketing implications.

Perhaps the most interesting fact gleaned from the invention of behavioral economics is that the clinical study of human happiness is flawed, because of a difference between "remembered happiness" and "experienced" happiness. In other words, when we remember happiness and describe it, there is often very little relationship to how happy we are "right now."

Nobel laureate and founder of behavioral economics Daniel Kahneman reveals how our "experiencing selves" and our "remembering selves" perceive happiness differently. This new insight has profound implications for economics, public policy -- and our own self-awareness.

Theme Zoom Neuromarketing expert Russell Wright has engaged the work of Daniel Kahneman in order to integrate the implications of his work into Neuromarketing. For example, the lifetime relationship of the customer is perhaps determined more by our remembering selves as long as the "end" of the experience of the most recent transaction is very good. People like "happy endings" and as a result, we should make the last point of contact with the customer a positive memory.

You may want to watch a video talk with Nobel laureate and founder of behavioral economics Daniel Kahneman.

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