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These developments spurred economists to reconsider how psychology could be applied to economic models and theories. [9] Concurrently, the Expected utility hypothesis and discounted utility models began to gain acceptance. In challenging the accuracy of generic utility, these concepts established a practice foundational in behavioral economics ...
Neuroeconomics is an interdisciplinary field that seeks to explain human decision-making, the ability to process multiple alternatives and to follow through on a plan of action. It studies how economic behavior can shape our understanding of the brain, and how neuroscientific discoveries can guide models of economics. [1]
An economic model is a theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them. The economic model is a simplified, often mathematical, framework designed to illustrate complex processes. Frequently, economic models posit structural parameters. [1]
Evolutionary economics is a school of economic thought that is inspired by evolutionary biology.Although not defined by a strict set of principles and uniting various approaches, it treats economic development as a process rather than an equilibrium and emphasizes change (qualitative, organisational, and structural), innovation, complex interdependencies, self-evolving systems, and limited ...
The cognitive tradeoff hypothesis argues that in the cognitive evolution of humans, there was an evolutionary tradeoff between short-term working memory and complex language skills. Specifically, early hominids sacrificed the robust working memory seen in chimpanzees for more complex representations and hierarchical organization used in language.
The fields of sociobiology and evolutionary psychology attempt to explain animal and human behavior and social structures, largely in terms of evolutionarily stable strategies. Sociopathy (chronic antisocial or criminal behavior) may be a result of a combination of two such strategies.
The hypothesis notes that humans spent most of their evolutionary history in hunter-gatherer societies, and it argues that ADHD represents a lack of adaptation to farming societies. Hartmann first developed the idea as a mental model after his own son was diagnosed with ADHD, stating, "It's not hard science, and was never intended to be."
Homo economicus is a term used for an approximation or model of Homo sapiens that acts to obtain the highest possible well-being for themself given available information about opportunities and other constraints, both natural and institutional, on their ability to achieve their predetermined goals.