Models of Irrational Behaviour Shown by Economic Agents: Approaches to Regulating

ABSTRACT

The goal of the article is to analyze models of irrational behavior shown by economic agents and approaches to their regulation. To achieve the goal, general and specific methods were used. Results: the paper reveals a reference, standard, and deviant model of individual behavior shown by economic agents when decision-making is determined by a complex of external and internal factors. The key approaches to regulating irrational behavior shown by economic agents are revealed using the key provisions of two concepts: behaviorist and ethological. The reasoned conclusion is that behaviorist tools can be used for simple decision-making with quick feedback and relatively easily identifiable effects. For complex decisions with no feedback and having difficult (or impossible) effect assessment, it is advisable to use cognitive ethology, which includes the tools: choice architecture and institutional design.

Keywords: behavior , economic agents , institutions , behaviorism , ethology , decision-making , economic theory , deliberate choice , institutional design.

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