TY - M-10102
AU - Reddy, Kalpna
AU - Mehta, Jivraj
TI - A New Approach to Behavioral Economics: How to Take Language Preferences into Account in Everyday Conversations
T2 - Scientific Research Journal of Business, Management and Accounting

PY - 2024
VL - 2
IS - 1
SN - 2584-0592

AB - This paper explores the integration of social and moral preferences in economic decision-making, highlighting the significance of fairness and ethical considerations. Models like Fehr and Schmidt's inequity phobia (1999) and Bolton and Ockenfels' ERC (2000) demonstrate that people value relative distribution and fair treatment. Additionally, moral preferences, influenced by strong ethical principles, can lead individuals to act against their financial interests, as seen in deontological ethics (Kant, 1785). The impact of language on behavior is also examined, with framing and metaphors playing crucial roles in shaping perceptions and actions. Liberman et al. (2004) provide evidence that linguistic framing affects cooperation. This paradigm shift in behavioral economics emphasizes the need for new models and experimental setups that consider language's influence on preferences and decision-making, aiming for a more holistic understanding of human behavior in economic contexts.

KW - Behavioral Economics
KW -  Social Preferences
KW -  Moral Preferences
KW -  Normal-Form Games
KW -  Language-Based Preferences
KW -  Paradigm Shift
KW -  Experimental Economics
DO -