The Human Development Index (HDI) is a measure of a country’s average achievements in three basic dimensions of human development: a long and healthy life, access to knowledge, and a decent standard of living. The HDI is the composite index used by the United Nations Development Programme (UNDP) as a way of measuring a country’s … Read more
The term “occupational labor mobility” refers to the process by which workers move between different occupations, typically in response to changes in economic conditions. This type of mobility is an important part of the labor market, as it allows workers to find new jobs when their previous ones have been made obsolete or when there … Read more
Adopter Categories Definition describes the different categories of users that adopt a new product or service. The categories are based on the rate of adoption, with “innovators” being the first to adopt, followed by “early adopters”, “early majority”, “late majority”, and “laggards”. The adopter categories were first defined by Everett Rogers in his 1962 book … Read more
Intertemporal choice is the study of how people make decisions about consumption and investment over time. It is a key area of research in behavioral economics, as it helps to explain why people sometimes make choices that are not in their best interests in the long run. There are a number of different models that … Read more
. What is Behavioral Economics? Behavioral economics is a branch of economics that studies the effects of psychological, social, and emotional factors on economic decisions and behavior. Who is the father of behavioral economics? Behavioral economics is a relatively new field that combines economics with psychology to better understand why people make the decisions they … Read more
The base rate fallacy is a cognitive bias that leads people to underestimate the probability of an event occurring if they only have information about specific cases that are related to that event. For example, someone might estimate the probability of winning the lottery to be very low because they only know about the few … Read more
Laissez-faire is an economic theory from the 18th century that advocated for an minimally regulated free market. The theory is based on the belief that the economy is best left to its own devices and that government intervention should be limited as much as possible. Laissez-faire economics was a major force in the Industrial Revolution … Read more
Rational behavior is defined as any behavior that is consistent with an individual maximizing their own self-interest. In other words, rational behavior is any behavior that is aimed at achieving the best possible outcome for the individual involved. There are a few key things to note about this definition. First, it is important to realize … Read more
Prospect Theory: What It Is and How It Works What is the prospect theory based on? Prospect theory is a model of decision making that was developed by Kahneman and Tversky in 1979. The theory is based on the observation that people often make decisions that are not in their best interests, and that these … Read more
. Rational Choice Theory: What It Is and What It Does in Economics, With Examples What is rational choice theory PDF? Rational choice theory, also known as choice theory or rational action theory, is a framework for understanding and often formally modeling social and economic behavior. The basic premise of rational choice theory is that … Read more
