Business, 16.12.2021 04:00, RockieLuv8707

Info~ People don't always make rational, self-interested economic decisions. That results in skewed, but not irrational decisions. Societies and governments need to step in to provide 'nudges' so that people make better decisions. Prices often don't reflect total cost. The clearest case for externalities is in the climate change debate. Our price of hydrocarbons in no way reflects the future cost to the planet of rising temperatures.
Governments can enact regulations and taxes to internalize those costs and it can support R&D to develop alternatives.

Question~ Does a shift towards behavioral economics undercut its usefulness as a tool for understanding our economy and society? Is the end of economics or does it open the door to the beginning of a new kind of analysis?

Can anyone give me there opinion? thanks!

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Info~ People don't always make rational, self-interested economic decisions. That results in skewed,...