Topics
Bounded self-control
This concept is closely linked to that of bounded rationality. Rationally, and according to neoclassical economic theory, consumers know when the price of a good/service exceeds the marginal utility they gain from consuming that good/service – in this rational world of homo economicus, consumers stop consuming. In reality, though, there is plenty of evidence to suggest that consumers often do not stop consuming even when it makes sense to stop – think about over-eating, excessive investment in a particular stock or share and so on.
Many behavioural scientists link bounded self-control to the concept of hyperbolic discounting i.e. valuing the present much more than the future, and making decisions that their “future self” would not like. This can help to explain, for example, people’s inability to save effectively for retirement.
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Rational Decision Making and Consumer Welfare
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Behavioural Biases [Head Start in A-Level Economics]
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Tim Harford on why we fail to prepare for disasters
16th April 2020
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Coronavirus and Behavioural Economics
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Marginal Utility and the Demand Curve
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A* Evaluation on Information Failures
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Behavioural Economics (Quizlet Revision Activity)
Quizzes & Activities
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Public Policy Issues and Behavioural Concepts
Study Notes
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Behavioural and Neo-Classical Economics (Revision Essay Plan)
Practice Exam Questions
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Test 14: A Level Economics: MCQ Revision on Utility Theory
Practice Exam Questions
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Intention-Action Gap (Behavioural Economics)
Study Notes
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Behavioural Theory in Action (Behavioural Economics)
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Behavioural Economics has a Nobel Moment
12th October 2017
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Climate change, uncertainty and discounting the future
13th September 2017
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Behavioural Economics - Battling Obesity
28th July 2017