Written by Reuven Brenner
Over the years, some economists carried out laboratory experiments and argued that people are inconsistent in ways they assess risks and probabilities. They concluded that it is misleading to rely on other economists’ view of risk, and that economics cannot be separated from psychology. This field of study is known today as “behavioral economics” (Kahneman and Tversky its founders), which, as briefly shown here, is neither “behavioral,” nor “economics,” nor makes sense.
Read full article: Asia Times, December 13, 2015