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Limited Rationality in a Cognitive Framework: Behavioral Economic Analysis Based on Consumption and Investment Phenomena
- 1 Beijing Normal University-Hong Kong Baptist University United International College
* Author to whom correspondence should be addressed.
Abstract
Consumption and investment are essential decision-making processes in the daily life of people, as well as key indicators of social and national economic progress and regulation. The irrational behaviors and anomalies that emerge in the market nowadays have broken through the conventional assumptions and interpretations of rational economics, therefore, clarifying the underlying logic and fundamental principles of these phenomena is of considerable reference value for the judgments people make in manufacturing and living. Drawing on the framing effect theory of behavioral economics, this study will unpack the potential impact factors rooted in behavioral decision making by incorporating the perspectives of self-framing, sentiment, intertemporal decision making and risky decision making. According to the core findings of the framing effect, the study will progressively expand to the self-framing description framework and specific emotion elicitation constructed on its basis, and then integrate the promotional framing, intertemporal decision-making perspectives to refine the comprehensive analysis of irrational behavior.
Keywords
framing effect, sentiment, irrationality, intertemporal decision making
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Cite this article
Hu,S. (2023). Limited Rationality in a Cognitive Framework: Behavioral Economic Analysis Based on Consumption and Investment Phenomena. Advances in Economics, Management and Political Sciences,29,157-162.
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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