BEHAVIORAL ECONOMICS OF HAPPINESS

Behavioral Economics of Happiness



Behavioral Economics of Happiness

Economy

Science has for its object the knowledge of phenomena on the production, distribution and consumption of wealth, material goods in society. It is therefore a relatively open and dynamic perception.

All the facts relating to the production, distribution and consumption of wealth in a human community, this is a more static, since we are talking mostly facts.

Another approach to locate possible perceptions of the economy is to trace the origins of theories. In fact, the economy is the result of two causes: mechanical design and design ethics.

Consider first the mechanistic conception, which was dominant during the twentieth century.

The characteristic of this design is that it is primarily concerned with questions of logistics rather than ultimate ends or the search for "good man" or the question of "how we should live ". The goals are set, accepted a fairly simple and the purpose of work is to find appropriate means to achieve these purposes.

Schematically the dominant economic approach (neo-classical) table on the following assumptions:

•All economic agents act rationally; all agents seek their own interest (maximization of material benefits); own benefit and rationality are an achievement shared by all:

•Everyone assumes or knows that all act rationally and to their own advantage. Everyone knows that everyone knows they know ... and so on;

•Of any deviation from this general behavior has no major effect.

Happiness

Happiness is first that all men desire. It may indeed be admitted, that all men have this in common: they all seek happiness. At first glance this could dispense with seeking a definition. However, as is also shown that both the content of happiness as the means to achieve it may differ fundamentally, it is worthwhile to dwell a little on the concept. The Concise Oxford Dictionary defines happiness as "state of consciousness fully satisfied" The mention of the satisfaction of consciousness therefore refers to an inner dimension, fundamental. It's not instant gratification, momentary or emotion rather superficial, but a more permanent status and deep.

They are different causes that change our spending patterns. It is true that some people are thriftier and others that are more wasteful, but also personal situation strongly influences our consumption. For example, a person who is happily in love will not spend the same as another who suffered a close bereavement.

From the first time we have studied economics, part of the economy is the science that studies how human needs with a limited resources, we also teach that spending preferences are governed by a known and vary little over time. But in practice seem to some unrealistic assumptions, ie, the theory will depend on the current and future interests to remunerate our money, in addition to supposedly stable preferences, but our costs will also depend on our emotional states.

We have created behavioral economics that tries to study the psychological aspects of the economy, ie treating people as an economic purpose, but whatever they are human beings with weaknesses and strengths and to appear many times ...