The Behavioral Economics in Marketing’s Podcast Intro to Season 4 | Behavioral Economics in Marketing Podcast
Oct 16, 2021
A season preview that teases a mix of marketing, leadership and communication topics. It contrasts traditional economics with behavioral economics and highlights everyday irrational choices. It previews marketing-focused themes like anchoring, pricing biases and decision-making nudges.
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Rational Agent Assumption In Economics
- Traditional economics models humans as fully rational, utility-maximizing agents called homo economicus.
- This framing underpins standard analyses of production, distribution, and resource allocation.
Everyday Buying Mistakes
- Sandra asks listeners relatable questions about buying milk or finding a cheaper price after purchase to show irrational behavior.
- These examples illustrate how people often act against strict rationality in everyday purchases.
Limits Of Rational Choice
- Humans make decisions with bounded rationality, changing preferences, and imperfect information.
- Behavioral economics fills gaps where the rational-agent model fails by accounting for these real behaviors.