The conflict between psychology and economics

One of the underlying assumptions of economics is the idea of human rationality–that people will attempt to maximize their own well-being, or “utility.” In contrast, some perspectives in psychology–most notably the psychoanalytic–have presumed the fundamental irrationality–the “psycho-logic” (as opposed to logic) of human beings.

The conflict between perspectives has eroded over the last 20 years as the new integrative field of behavioral economics (also known as behavioral finance) has developed. My goal in this blog will be to explore some of the ideas and concepts from both psychology and behavioral finance and to consider how understanding these can help people develop a higher level of financial well-being, or fiscal fitness.

About elissawurf

Elissa Wurf, Ph.D. (psychology), CPA
This entry was posted in economics, psychology, rational vs irrational. Bookmark the permalink.

4 Responses to The conflict between psychology and economics

  1. I just want to mention I am just very new to weblog and absolutely savored you’re web blog. Most likely I’m likely to bookmark your site . You really have beneficial posts. Kudos for sharing your website page.

  2. I suggest adding a “google+” button for the blog!

  3. Candie says:

    I’m really into it, thnaks for this great stuff!

  4. Shanna says:

    I can already tell that’s gonna be super hlefpul.

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