a. Dr.. Appearance of Mohammed Saleh *
Economic life is emerging today, without exception, to test an economic trend that has begun to transcend the barriers of the neo-classical school since 1979 and turn into so-called behavioral economics, which adopts the theory of hope and perception in economic decision-making. This theory was considered as a crossroads in the integration of psychological behavioral factors in models and economic models related to Economic decision. The traditional framework for the decision-making process adopted by mainstream or prevailing trends such as the neoclassical economy, for example, tends to adopt options between the various alternatives available depending on the desired results Through the goals that it looks the same decision maker which is summarized in the sports economy are aware of the benefit of a function mostly.
The economic decision theory is based on the description of the conditions under which the option can be achieved (ie, the optimal option and its characteristics). When there is an economic risk (ie loss), the alternative available for each option will provide a probability distribution of the possibility of achieving the results by which the decision maker chooses Best probability distributions.
Regardless of this and that in addressing the issue of decision-making in the main currents of economics, the basic principles of the theory of hope and the construction of perceptions have been based on the principles of five since its birth in 1979. This trend in behavioral economics as a new school in economic sciences pioneers Daniel Kanman and Richard Thieler, who won two Nobel Prizes in Economics in 2002 and 2017, respectively.
This leads us to gather ideas to summarize the five basic principles of the theory of hope and perception of economic decision makers and in accordance with the vision that came to Daniel Kanman and others as follows: The first principle goes to the idea that the actual decision in economic action responds (to changes in wealth) rather than wealth The change in the total value of the net assets of one individual and its assets. This is contrary to the traditional trends in economics that consider decision-making to be in response to the issues of profit and loss
Economic life is emerging today, without exception, to test an economic trend that has begun to transcend the barriers of the neo-classical school since 1979 and turn into so-called behavioral economics, which adopts the theory of hope and perception in economic decision-making. This theory was considered as a crossroads in the integration of psychological behavioral factors in models and economic models related to Economic decision. The traditional framework for the decision-making process adopted by mainstream or prevailing trends such as the neoclassical economy, for example, tends to adopt options between the various alternatives available depending on the desired results Through the goals that it looks the same decision maker which is summarized in the sports economy are aware of the benefit of a function mostly.
The economic decision theory is based on the description of the conditions under which the option can be achieved (ie, the optimal option and its characteristics). When there is an economic risk (ie loss), the alternative available for each option will provide a probability distribution of the possibility of achieving the results by which the decision maker chooses Best probability distributions.
Regardless of this and that in addressing the issue of decision-making in the main currents of economics, the basic principles of the theory of hope and the construction of perceptions have been based on the principles of five since its birth in 1979. This trend in behavioral economics as a new school in economic sciences pioneers Daniel Kanman and Richard Thieler, who won two Nobel Prizes in Economics in 2002 and 2017, respectively.
This leads us to gather ideas to summarize the five basic principles of the theory of hope and perception of economic decision makers and in accordance with the vision that came to Daniel Kanman and others as follows: The first principle goes to the idea that the actual decision in economic action responds (to changes in wealth) rather than wealth The change in the total value of the net assets of one individual and its assets. This is contrary to the traditional trends in economics that consider decision-making to be in response to the issues of profit and loss
The second principle addressed by the theory of hope is (different positions on risk), ie, the degree of difference in risk tolerance, especially the face of loss. The difference is achieved even within the same time point and depends on the diagnostic power of the decision maker whether the loss really exists or not? This requires the ability to diagnose loss avoidance contexts where the importance of loss avoidance is important for the diagnosis of contextual contexts. The third principle is based on the so-called (diminishing sense) phenomenon of profits and losses. Decreased sensitivity requires an accurate range based on estimates that come in accordance with the different contexts of individual decision-makers. The fourth principle notes that economic decision-makers and their makers build on the theory of hope their choices on probability theory as the neo-classical school of economics goes, but they rely on what they see as a chance of success, ie optimism. This is the case that is seen as the case of a shift in probability. The theory of hope differs from the theory of probability among decision-makers, especially in weak or verifiable probabilities, which are usually very overvalued or sometimes underestimated or even neglected . The most objective possibilities need to be (transformation or change), which requires the need to limit and visa.
Finally, it is noticed that the theory of hope that behavioral economics deals with is still evolving. Therefore, the predominant basis in decision-making is based on a principle associated with the contemplation called "visualization". The perceptions are subject to two types of options: the wide choice or the narrow alternative. The latter is called the narrow option of visualizing the phenomenon of short-sighted decision-making. However, perceptions remain important in decision-making and need to continue as a discretionary power. The importance of decision-making.
Finally, the main economics schools such as the neo-classical school and the modern ecclesiastical school have shown a strong reservation in the use of the theory of hope in economic decision-making for the first two reasons: the expectations are modifiable because of the probability shift and the second, the points of inference or points of reference that imply The theory of hope is still incomplete and suffers from a lack of characterization when making decisions in the real world. Thus, the development of economic thought in the shadow of the Fourth Technological Revolution or the current digital age was influenced by the biological or biological theory of the economic behavior of the 21st century, and away from the thought patterns of the physical pattern and constancy that was led by the second and third technological revolutions of the twentieth century.
(*) Economic and financial adviser to the Iraqi Prime Minister
(**) If the probability means a quantitative measure in the verification of a randomized randomized event expressed by the number zero, which means the probability of occurrence of the event and the number one, which means the achievement of the event completely. While the probability distribution of the random variable to the diagnosis, which can by that random variable to take Any value or range of values.
Source: Iraqi Economists Network
SOURCE
Finally, it is noticed that the theory of hope that behavioral economics deals with is still evolving. Therefore, the predominant basis in decision-making is based on a principle associated with the contemplation called "visualization". The perceptions are subject to two types of options: the wide choice or the narrow alternative. The latter is called the narrow option of visualizing the phenomenon of short-sighted decision-making. However, perceptions remain important in decision-making and need to continue as a discretionary power. The importance of decision-making.
Finally, the main economics schools such as the neo-classical school and the modern ecclesiastical school have shown a strong reservation in the use of the theory of hope in economic decision-making for the first two reasons: the expectations are modifiable because of the probability shift and the second, the points of inference or points of reference that imply The theory of hope is still incomplete and suffers from a lack of characterization when making decisions in the real world. Thus, the development of economic thought in the shadow of the Fourth Technological Revolution or the current digital age was influenced by the biological or biological theory of the economic behavior of the 21st century, and away from the thought patterns of the physical pattern and constancy that was led by the second and third technological revolutions of the twentieth century.
(*) Economic and financial adviser to the Iraqi Prime Minister
(**) If the probability means a quantitative measure in the verification of a randomized randomized event expressed by the number zero, which means the probability of occurrence of the event and the number one, which means the achievement of the event completely. While the probability distribution of the random variable to the diagnosis, which can by that random variable to take Any value or range of values.
Source: Iraqi Economists Network
SOURCE