Reflection Report

Reflection Report

Introduction

Dan Ariely is the James B. Duke Professor of Psychology and Behavioral Economics at Duke University. The behavioral economics is considered as one of the most interested topic to be studied in the context of economics and there is so much work done on it in past so many years. The contribution of so many such names has made area really very enriched and equipped with much more pronounced set of knowledge. All the contributions which are made by Dan Ariely through predictably irrational are featured in form of so many outlets which have been acclaimed and highly criticized in the journals like the Wall Street Journal and New York Times, The Washington Post, The Boston Globe, and others. This paper is dealing with criticizing his finding in an in-depth manner and getting an understanding of the contributions he has been making so far.

Behavioral Economics

The economics is usually bifurcated in two parts. Standard and behavioral economics both are basically having the similar interest.  The choices which are made by the people, the role played by the information and affects on the incentives and other such issues. The core difference between the two is that unlike the standard economic behavioral believe that the people are basically irrational. Behavioral economists figure out the actual behavior of the people which is mostly under the control of the environment in which the behaviors are much more understandable. This is used as a standard point at the time of building a better understanding regarding the human nature.

Due to all this it is seen that the starting point, behavioral economists usually come on the various different sort of conclusions regarding the logic and also regarding the efficacy of anything. This is ranging from mortgages to the savings and other factors like healthcare in personal and business dominion.

Market Fixings

It has always been seen that the market sometime get a bit unpredictable. The question is that why will the market be fixing the mistakes rather than aggravating them. It is seen that at the time when the economists of the Chicago in few cases unwillingly admit. That the people are the one who are making mistakes it is then claimed that those mistakes are of different kinds and they all will be eventually cancelling one another and put it out of the market. Behavioral economist in many case put the arguments that people will be making ...