Psychology of Behavioral Economics

Topic

Psychology of Behavioral Economics

Instructions

Discuss the Psychology of Behavioral Economics.

Answer preview

According to Vincent, a father of two teenage boys, who is employed at a local commercial bank as bank agent; when faced with the decision of a certain win on one hand, in terms of saving the lives of 200 fellow Americans, and some uncertainty on the other hand in the form of a 33.33% chance of winning, in terms of saving all the 600 Americans that are potentially in harms’ way or 66.67% chance of losing it all, all the 600 Americans – he (Mr. Vincent) and indeed many of the interviewees opted for the risk free alternative, and chose the program A with a certainty of 200 people.

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