Basic features and characteristics of behavioral and experimental economy formation

Abstract

The preconditions for the emergence of behavioral economics are examined in the article, the relationship between behavioral and experimental economics are outlined and the features of the economic entities behavior irrationality are identified. The irrationality of human behavior from the standpoint of modern researchers and assumptions about the possibility of predicting such irrationality in economic models are analyzed. The peculiarities of conducting experiments are highlighted and their significance for research in behavioral economics is proved. It is shown that economic theories, which are based on a methodological approach to understanding human behavior as absolutely rational, formalization of scenarios of its behavior have long failed to withstand scientific criticism and do not have enough convincing empirical evidence. The differences between the research tools in behavioral and experimental economics are determined. The difference between "economy" and "humane" is shown. Economic people must make their decisions based on logic and mathematics, and humane people are characterized by volatility of decisions due to the tendency to framing and other cognitive biases. It is shown that the "economy" has the following features: a priority desire to meet their own needs and the development of personal interest; natural desire to improve their own economic situation; leveling of psychological, ethical and spiritual values in order to achieve economic goals; full awareness of the phenomena and trends of economic processes; rational economic behavior, etc. It has been determined that the subjects of economic relations are guided not by absolute rationality, but often by emotional or instinctive impulses, which are often inconsistent with the logical mechanism of decision-making from the point of view of efficiency. A promising area of further research is the analysis of cognitive biases, psychophysiological patterns, social norms and their impact on decision-making processes in the economy.