International Conference on Eurasian Economies
11-13 June 2019 – Famagusta, Turkish Republic of Northern Cyprus
Paper properties
Paper ID : 2259
Status : Paper published
Language : Turkish
Topic : Microeconomics and Entrepreneurship
Presenter: Asst. Prof. Dr. Aslı Öztopçu
Session : 2B Mikroekonomi
The Role of Emotions in Economic Decision Making
Ekonomik Karar Vermede Duyguların Rolü
- Asst. Prof. Dr. Aslı Öztopçu (Maltepe University, Türkiye)
Abstract
Decision making points out to the consequences of past or future behaviors. An individual has to make decisions on all subjects throughout his life. An important part of these decisions are economic decisions. Individuals make decisions such as renting, buying, buying new goods, migrating, changing jobs, making investments, enterprise, choosing holidays, evaluating savings. Non-rational decisions are observed although individuals should make rational decision, according to mainstream economics. In this study, the effects of the emotions that form the basis of psychology, such as time, option constraint, opportunities, risk taking, risk aversion, procrastination, rush, or uncertainty, inconsistency, intuitive movement, cognitive error in the decision-making process of individuals are discussed. For this purpose, the characteristics of decision-making process, individual effects of cognitive of emotions, individual decision making theorems in economic theory and behavioral economics literature are mentioned. It is thought that the role of emotions that shape behaviors should be known in the regulation of economic life that is determined according to human behavior.
JEL codes:
Öztopçu, Aslı (2019). "The Role of Emotions in Economic Decision Making" in Proceedings of International Conference of Eurasian Economies 2019, pp.153-159, Famagusta, Turkish Republic of Northern Cyprus.
DOI: https://doi.org/10.36880/C11.02259
