Skip to main navigation menu Skip to main content Skip to site footer

Vol. 40 No. 72 (2021)

Economic theory

Economic Behaviour from a Biological and Psychological Approach

https://doi.org/10.19053/01203053.v40.n72.2021.12474

Published 2021-07-25

  • Cindy Cifuentes Gómez
    • ,
  • Siervo Tulio Delgado Ruiz
    • ,
  • Jorge Iván González

Cindy Cifuentes Gómez
Independent Researcher

Siervo Tulio Delgado Ruiz
Universidad Pedagógica y Tecnológica de Colombia UPTC

Jorge Iván González
Universidad Externado de Colombia

Abstract

This paper explores some principles of economic behaviour from a biological and psychological perspective, through a reflective analysis on the feasibility of understanding economic actions of individuals from a review of features of non-economic sciences. Emotions are emphasized as important factors in decision-making. Understanding these reasons helps improve the design and evaluation of public policies and investment decisions; furthermore, it is shown that the context of inequality and happiness affects the formation of the heuristic judgment.

 

 

Keywords

behaviour, economics, biology, psychology, preferences, beliefs, heuristic, evolutionism, adaptability, happiness, inequality

PDF (Español) HTML (Español) XML (Español)

Author Biography

Siervo Tulio Delgado Ruiz

Docente de tiempo completo de la Escuela de Economía de la Universidad Pedagógica y tecnológica de Colombia (UPTC)

References

  1. Arrow, K. (1982). Risk Perception in Psychology and Economics. Economic Inquiry, 20(1), 1-9. https://doi.org/10.1111/j.1465-7295.1982.tb01138.x DOI: https://doi.org/10.1111/j.1465-7295.1982.tb01138.x
  2. Bechara, A., Damasio, H., Tranel, D. & Damasio, A. R. (1997). Deciding Advantageously Before Knowing the Advantageous Strategy. Science, 275(5304), 1293-1295. https://doi.org/10.1126/science.275.5304.1293 DOI: https://doi.org/10.1126/science.275.5304.1293
  3. Bergman, D. C. (1998). Evolutionary Aspects of Learning: The Interface Between Fitness and Action. In Proceedings of the 7th International Behavioral Ecology Congress.
  4. Bernoulli, D. (1954, January). Exposition of a New Theory on the Measurement of Risk. Econometrica, 22(1), 23-36. https://doi.org/10.2307/1909829 DOI: https://doi.org/10.2307/1909829
  5. Bjorklund, D. (2000). Children’s Thinking: Developmental Function and Individual Differences. Wadsworth.
  6. Bjorklund, D. & Pellegrini, A. (2002). The Origins of Human Nature: Evolutionary Developmental Psychology. American Psychological Association. https://doi.org/10.1037/10425-000 DOI: https://doi.org/10.1037/10425-000
  7. Camerer, C. (1996). Rules for Experimenting in Psychology and Economics, and Why They Differ. In W. Albers et al. (eds), Understanding Strategic Interaction (pp. 313-327). Springer. https://doi.org/10.1007/978-3-642-60495-9_25 DOI: https://doi.org/10.1007/978-3-642-60495-9_25
  8. Camerer, C., Loewenstein, G. & Prelec, D. (2005). Neuroeconomics: How Neuroscience can Inform Economics. Journal of Economic Literature, 43(1), 9-64. https://doi.org/10.1257/0022051053737843 DOI: https://doi.org/10.1257/0022051053737843
  9. Camerer, C. & Lovallo, D. (1999). Overconfidence and Excess Entry: An Experimental Approach. The American Economic Review, 29(1), 306-318. https://doi.org/10.1257/aer.89.1.306 DOI: https://doi.org/10.1257/aer.89.1.306
  10. Cerda, A. A., García, L. Y., Ortega-Farías, S., & M. Ubilla, A. (2012). Consumer Preferences and Willingness to Pay for Organic Apples. Ciencia e Investigación Agraria, 39(1), 47-59. https://doi.org/10.4067/S0718-16202012000100004 DOI: https://doi.org/10.4067/S0718-16202012000100004
  11. Clapp, J. & McDonnell, A. (2000). The Relationship of Perceptions of Alcohol Promotion and Peer Drinking Norms to Alcohol Problems Reported by College Students. Journal of College Student Development, 41, 19-26.
  12. Damasio, A. (1994). Descartes’ Error. Avon Books.
  13. Darwin, C. (1872). The Expression of the Emotions in Man and Animals. John Murray. https://doi.org/10.1037/10001-000 DOI: https://doi.org/10.1037/10001-000
  14. De Martino, B., Kumaran, D., Seymour, B., & Dolan, R. (2006). Frames, Biases, and Rational Decision-Making in The Human Brain. Science, 313, 684–687. DOI: https://doi.org/10.1126/science.1128356
  15. Departamento Administrativo Nacional de Estadística -DANE-. (2017). Estadísticas de pobreza multidimensional del DANE. DANE.
  16. Dolan, P., Hallsworth, M., Halpern, D., King, D., Metcalfe, R. & Vlaev, I. (2012, February). Influencing Behaviour: The Mindspace Way. Journal of Economic Psychology, 33(1), 264-277. https://doi.org/10.1016/j.joep.2011.10.009 DOI: https://doi.org/10.1016/j.joep.2011.10.009
  17. Flores, L. & Ostroksy-Solís, F. (2008). Neuropsicología de lóbulos frontales, funciones ejecutivas y conducta humana. Revista Neuropsicología, Neuropsiquiatría y Neurociencias, 8(1), 47-58.
  18. Fodor, J. (2000). The Mind Doesn’t Work That Way: The Scope and Limits of Computational Psychology. MIT Press. https://doi.org/10.7551/mitpress/4627.001.0001 DOI: https://doi.org/10.7551/mitpress/4627.001.0001
  19. Geary, D. C. & Huffman, K. J. (2002). Brain and Cognitive Evolution: Forms of Modularity and Functions of Brain. Psychological Bulletin, 128(5), 667-698. https://doi.org/10.1037/0033-2909.128.5.667 DOI: https://doi.org/10.1037/0033-2909.128.5.667
  20. Genesove, D. & Mayer, C. (2001). Loss Aversion and Seller Behavior: Evidence from the Housing Market. Quarterly Journal of Economics, 116(4), 1233-1260. https://doi.org/10.1162/003355301753265561 DOI: https://doi.org/10.1162/003355301753265561
  21. Gilbert, T. (1989). Thinking Lightly About Others: Automatic Components of the Social Inference Process. In J. S. Uleman & J. A. Bargh (eds.), Unintended Thought. Prentice-Hall, Englewood Cliffs.
  22. González, J. I. (2011). Psicología, biología y economía. Suma de Negocios, 2(2), 7-16.
  23. Hatton MacDonald, D., Morrison, M. & Barnes, M. (2010). Willingness to Pay and Willingness to Accept Compensation for Changes in Urban Water Customer Service Standards. Water Resources Management, 24, 3145-3158. https://doi.org/10.1007/s11269-010-9599-7 DOI: https://doi.org/10.1007/s11269-010-9599-7
  24. Hernández-Blasi, C., Bering, J. & Bjorklund, D. F. (2003). Psicología evolucionista del desarrollo: contemplando la ontogénesis humana desde los ojos del evolucionismo. Infancia y Aprendizaje, 26(3), 267-285. https://doi.org/10.1174/021037003322299043 DOI: https://doi.org/10.1174/021037003322299043
  25. Hernández , I. (2010). Economía evolucionista y Darwin. Acta Biológica Colombiana.
  26. Hernández, I. (2011). Desigualdad, felicidad y la economía evolucionista. En V. A. Papini (ed.), Darwin y las ciencias del comportamiento (pp. 301-310). Universidad Nacional de Colombia.
  27. Hodgson, G. (1993). Institutional Economics: Surveying the ‘Old’ and the ‘New’. Metroeconomica, 44(1),1-28. https://doi.org/10.1111/j.1467-999X.1993.tb00786.x DOI: https://doi.org/10.1111/j.1467-999X.1993.tb00786.x
  28. Hogdson, G. (1997). The evolutionary and Non-Darwinian Economics of Joseph Schumpeter. Journal of Evolutionary Economics, 7, 131-145. https://doi.org/10.1007/s001910050038 DOI: https://doi.org/10.1007/s001910050038
  29. Kahneman, D. (1994). New Challenges to the Rationality Assumption. In New Challenges to the Rationality Assumption (pp. 18-36). https://www.jstor.org/stable/40753012
  30. Kahneman, D. (2000). Evaluation by Moments: Past and Future. Cambridge University Press. https://doi.org/10.1017/CBO9780511803475.039 DOI: https://doi.org/10.1017/CBO9780511803475.039
  31. Kahneman, D. (2002). Conference: The American Economic Review. American Psychologist, 93(5), 1449-1475. https://doi.org/10.1257/000282803322655392 DOI: https://doi.org/10.1257/000282803322655392
  32. Kahneman, D. & Frederick, S. (2005). A Model of Heuristic Judgment. In K. J. Holyoak & R. G. Morrison (Eds.), The Cambridge Handbook of Thinking and Reasoning (pp. 267-293). Cambridge University Press.
  33. Kahneman, D. & Lovallo, D. (1993). Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking. Management Science, 39(1), 17-31. https://doi.org/10.1287/mnsc.39.1.17 DOI: https://doi.org/10.1287/mnsc.39.1.17
  34. Kahneman, D. & Tversky, A. (1979). Prospect Theory: An Analysis of Decisions Under Risk. Econometrica, 47(2), 313-327. https://doi.org/10.2307/1914185 DOI: https://doi.org/10.2307/1914185
  35. Kahneman, D. & Tversky, A. (1982). The Psychology of Preferences. Scientific American, 246, 160-173. https://doi.org/10.1038/scientificamerican0182-160 DOI: https://doi.org/10.1038/scientificamerican0182-160
  36. Kahneman, D., Wakker, P. P. & Sarin, R. (1997, May). Back to Bentham? Explorations of Experienced Utility. Quarterly Journal of Economics, 112(2), 375-405. DOI: https://doi.org/10.1162/003355397555235
  37. Kusev, P., Van Schaik, P., Ayton, P., Dent, J., & Chater, N. (2009). Exaggerated Risk: Prospect Theory and Probability Weighting in Risky Choice. Journal of Experimental Psychology: Learning, Memory and Cognition, 35(6), 1487-1505.
  38. https://doi.org/10.1037/a0017039 DOI: https://doi.org/10.1037/a0017039
  39. Lagos, M. (2016). La confianza en América Latina. Latinobarómetro Opinión Pública Latinoamericana. www.latinobarometro.com
  40. La Rocca, S. M. (2003). Física, biología... ¿y después? Actas de las IX Jornadas de Epistemología de las Ciencias Económicas y IV Simposio de la Sociedad
  41. Iberoamericana de Metodología de la Economía. Facultad de Ciencias Económicas Universidad de Buenos Aires.
  42. Lerner, J. S. (1999). Accounting for the Effects of Accountability. Psychological Bulletin, 125(2). https://doi.org/10.1037/0033-2909.125.2.255 DOI: https://doi.org/10.1037/0033-2909.125.2.255
  43. Lichtenstein, S., Slovic, P., Fischhoff, B., Layman, M., & Combs, B. (1978). Judged Frequency of Lethal Events. Journal of Experimental Psychology: Human Learning and Memory, 4(6), 551-578. https://doi.org/10.1037/0278-7393.4.6.551 DOI: https://doi.org/10.1037/0278-7393.4.6.551
  44. Loewenstein, G. & Prelec, D. (1992). Anomalies in Intertemporal Choice: Evidence and an Interpretation. Quarterly Journal of Economics, 107(2), 573-597. https://doi.org/10.2307/2118482 DOI: https://doi.org/10.2307/2118482
  45. Loewenstein, G., Weber, E. U., & Hsee, C. K. (2001). Risk as Feelings. Psychological Bulletin, 127(2), 267-286. https://doi.org/10.1037/0033-2909.127.2.267 DOI: https://doi.org/10.1037/0033-2909.127.2.267
  46. Mantzavinos, C., North, D. & Shariq, S. (2004). Learning, Institutions, and Economic Performance. Perspectives on Politics, 2(1), 75-84. https://doi.org/10.1017/S1537592704000635 DOI: https://doi.org/10.1017/S1537592704000635
  47. Masera, G. (2013, dic.). Evolucionismo histórico y biológico. En el debate económico contemporáneo. Filosofía de la Economía,1(2), 69-87.
  48. McClure, S. M., Ericson, K. M., Laibson, D. I., Loewenstein, G., & Cohen, J. D. (2007). Time Discounting for Primary Rewards. Journal of Neuroscience, 27, 5796-5804. DOI: https://doi.org/10.1523/JNEUROSCI.4246-06.2007
  49. McClure, S. M., Laibson, D. I., Loewenstein, G., & Cohen, J. D. (2004). Separate Neural Systems Value Immediate and Delayed Monetary Rewards. Science, 306, 503-507. DOI: https://doi.org/10.1126/science.1100907
  50. Montoya, M. I. (2010). Situación de la competitividad de las pyme en Colombia: elementos actuales y retos. Agronomía Colombiana, 28(1), 107-117.
  51. Ng, Y.-K. (1996, April 21). Complex Niches Favour Rational Species. Journal of Theoretical Biology, 179(4), 303-311. https://doi.org/10.1006/jtbi.1996.0069 DOI: https://doi.org/10.1006/jtbi.1996.0069
  52. Oswald, A. (1997). Happiness and Economic Performance. Economic, 107(445). https://doi.org/10.1111/j.1468-0297.1997.tb00085.x DOI: https://doi.org/10.1111/j.1468-0297.1997.tb00085.x
  53. Posner, M. I. & Keele, S. W. (1968). On the Genesis of Abstract Ideas. Journal of Experimental Psychology, 77(3), 353-363. https://doi.org/10.1037/h0025953 DOI: https://doi.org/10.1037/h0025953
  54. Robson, A. (2002). Evolution and Human Nature. The Journal of Economic Perspectives,16(2), 89-106. https://doi.org/10.1257/0895330027274 DOI: https://doi.org/10.1257/0895330027274
  55. Robson, A. (2003). The Biological Basis of Economic Behaviour. Journal of Economic Literature, 39, 11-33. https://doi.org/10.1257/jel.39.1.11 DOI: https://doi.org/10.1257/jel.39.1.11
  56. Robson, C. (2011). Real World Research: A Resource for Social-Scientists and Practitioner-Researchers. Blackwell Publishing.
  57. Rogers, A. (1994). Evolution of Time Preference by Natural Selection. American Economic Review, 84(3), 460-481.
  58. Rosch, E. & Mervis, C. (1975). Family Resemblances: Studies in the Internal Structure of Categories. Cognitive Psychology, 7(4), 573-605. https://doi.org/10.1016/0010-0285(75)90024-9 DOI: https://doi.org/10.1016/0010-0285(75)90024-9
  59. Ross, L. & Nisbett, R. (1991). The Person and the Situation. McGraw-Hill.[58] Rottenstreich, Y. & Hsee, C. (2001). Money, Kisses and Electric Shocks: On the Affective Psychology of Risk. Psychological Science, 12(3), 185-190. https://doi. DOI: https://doi.org/10.1111/1467-9280.00334
  60. org/10.1111/1467-9280.00334
  61. Schaap, M. K. (2008). Effect of Nationwide Tobacco Control Policies on Smoking Cessation in High and Low Educated Groups in 18 European Countries. Tobacco Control, 17(4), 248-255. https://doi.org/10.1136/tc.2007.024265 DOI: https://doi.org/10.1136/tc.2007.024265
  62. Scitovsky, T. (1992). The Joyless Economy. Oxford University Press. DOI: https://doi.org/10.1093/oso/9780195073461.001.0001
  63. Simon, H. (1986). Rationality in Psychology and Economics. The Journal of Business, 59(4), Part 2: The Behavioral Foundations of Economic Theory, S209-S224. https://doi.org/10.1086/296363 DOI: https://doi.org/10.1086/296363
  64. Slovic, P. M. (2002). Influence of Affective Processes on Toxicologists’ Judgments of Risk. Unpublished Study.
  65. Stanovich, K. E. & West, R. F. (2002). Individual differences in reasoning: Implications for the rationality debate? In T. Gilovich, D. Griffin& D. Kahneman (Eds.), Heuristics & Biases: The Psychology of Intuitive Judgment (pp. 421-440).
  66. Cambridge University Press. https://doi.org/10.1017/CBO9780511808098.026 DOI: https://doi.org/10.1017/CBO9780511808098.026
  67. Sternberg, R. (1997). The Concept of Intelligence and Its Role in Lifelong Learning and Success. American Psychologist, 52(10), 1030-1037. https://doi.org/10.1037/0003-066X.52.10.1030 DOI: https://doi.org/10.1037/0003-066X.52.10.1030
  68. Strotz, R. (1956). Myopia and Inconsistency in Dynamic Utility Maximization. Review of Economic Studies, 23(3),165-180. https://doi.org/10.2307/2295722 DOI: https://doi.org/10.2307/2295722
  69. Thaler, R. (1980). Toward a Positive Theor y of Consumer Choice. Journal of Economic Behavior and Organization, 1(1), 39-60. https://doi.org/10.1016/0167-2681(80)90051-7 DOI: https://doi.org/10.1016/0167-2681(80)90051-7
  70. Thaler, R. (1985). Mental Accounting and Consumer Choice. Marketing Science, 4, 199-214. https://doi.org/10.1287/mksc.4.3.199 DOI: https://doi.org/10.1287/mksc.4.3.199
  71. Thaler, R. (1999). Mental Accounting Matters. Journal of Behavioral Decision Making, 12, 183-206. https://doi.org/10.1002/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F DOI: https://doi.org/10.1002/(SICI)1099-0771(199909)12:3<183::AID-BDM318>3.0.CO;2-F
  72. Thaler. R. & Kahneman, D. (1991). Economic Analysis and The Psychology of Utility: Applications to Compensation Policy. American Economic Review, 81(2), 341-352.
  73. Thaler, R. & Sunstein, C. (2017). Nudge, Improving Decisions About Health, Wealth, and Happiness. Penguin Random House.
  74. The Nobel Prize. (2021). Richard H. Thaler Facts. https://www.nobelprize.org/prizes/economic-sciences/2017/thaler/facts/
  75. The Nobel Prize. (2021). Daniel Kahneman Facts. https://www.nobelprize.org/prizes/economic-sciences/2002/kahneman/facts/
  76. Tom, S., Fox, C., Trepel, C., & Poldrack, R. (2007). The Neural Basis of LossAversion in Decision-Making Under Risk. Science, 315(5811), 515–518. DOI: https://doi.org/10.1126/science.1134239
  77. Tremblay, L., Hollerman, J. & Schultz, W. (1998). Modifications of Reward Expectation-Related Neuronal Activity During Learning in Primate Striatum. Journal of Neurophysiology, 80(2), 964-977. https://doi.org/10.1152/ DOI: https://doi.org/10.1152/jn.1998.80.2.964
  78. jn.1998.80.2.964
  79. Tversky, A. & Kahneman, D. (1981). The Framing of Decisions and the Psychology of the Choice. Science, 211(4481), 453-458. https://doi.org/10.1126/science.7455683 DOI: https://doi.org/10.1126/science.7455683
  80. Tversky, A. & Kahneman, D. (1986). Rational Choice and the Framing of Decisions. Journal of Business, 251-278. https://doi.org/10.1086/296365 DOI: https://doi.org/10.1086/296365
  81. Tversky, A. & Kahneman, D. (1991). Loss Aversion in Riskless Choice: A Reference-Dependent Model. Quarterly Journal of Economics, 106(4),1039-1061. https://doi.org/10.2307/2937956 DOI: https://doi.org/10.2307/2937956
  82. Watanabe, M. & Sakagami, M. (2007). Integration of Cognitive and Motivational Context Information in the Primate Prefrontal Cortex. Cerebral Cortex, 17, 101-109. https://doi.org/10.1093/cercor/bhm067 DOI: https://doi.org/10.1093/cercor/bhm067
  83. Witt, U. (2003). The Evolving Economy: Essays on the Evolutionary Approach to Economics. Edward Elgar. DOI: https://doi.org/10.4337/9781035304646
  84. Word Happiness Report. (2017). Report. https://worldhappiness.report/ed/2017/
  85. Word Happiness Report. (2018). Report. https://worldhappiness.report/ed/2018/

Downloads

Download data is not yet available.

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.