The Behavioral Economics in Marketing’s Podcast Intro to Season 6 | 30 Day Challenge | Behavioral Economics in Marketing Podcast
Jan 1, 2023
A season kickoff announcing a 30-day challenge and a roadmap for upcoming topics. They contrast traditional economic assumptions with real human behavior. Everyday irrational choices like price sensitivity and saving mistakes are highlighted. The conversation previews nudges, dual-process thinking, social proof, confirmation bias, and anchoring effects.
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Limits Of The Rational Agent Model
- Traditional economics assumes people are perfectly rational decision-makers aware of all options and payoffs.
- That model misses real human limits like bounded rationality, changing preferences, and lack of self-control.
Everyday Examples Of Irrational Choices
- Sandra asks listeners if they've bought something only to see it cheaper later or paid a premium at a corner store for convenience.
- These everyday examples illustrate how people routinely behave irrationally versus textbook predictions.
Why Behavioral Economics Matters
- Humans make decisions with uncertainty, limited feedback, and shifting preferences rather than perfect optimization.
- Behavioral economics integrates psychology to better capture these real motivations and decision contexts.