Factors of behaviorial economy impacting on the company management

• Authors: Zoltán Peredy , Sujit Chaudhuri , Jinzhao Li

Title variants

PL

Czynniki gospodarki behawioralnej wpływające na zarządzanie spółką

Abstracts

PL

Celem artykułu jest zbadanie sposobów poprawy poziomu produktywności poprzez racjonalną organizację i alokację czynników ludzkich, finansowych i materialnych w istniejących warunkach. Artykuł jest próbą ukazania wpływu nurtu ekonomii behawioralnej na zarządzanie. Autorzy bazują głównie na dyskusji literaturowej, teoretycznej. Zalecenia w artykule są zestawem teoretycznych postulatów.

EN

Management science came into being to meet the needs of modern, socialized mass production. Its purpose is to study how to improve the level of productivity through rational organization and allocation of human, financial, and material factors under the existing conditions. Management is a comprehensive, interdisciplinary subject. Economics is an independent subject in modern times, and it is a science about the law of economic development. Economics not only forms the theoretical foundation of management together with mathematics and psychology but also provides analytical methods for management. The relationship between economics and management is not unidirectional but bilateral, which can be said to be an interactive relationship that promotes each other. Finally, due to the close linkages and integration of economics and management, marginal disciplines such as economic management and management economics have emerged one after another, while most of the research in the field of economic management has both an amphibious nature of economics and management. Traditional economics focuses on rational decisions based on profit maximization, cost and delivery time reduction, and raising output volume and quality. On the contrary, behavioral economics doesn’t assume that people are good at utility maximization or that it is people’s only goal. The behavioral economics underpinning the interested actors psychological biases (e.g., loss aversion), limited cognitive resources, and care about other values such as fairness, all of which can impact their economic decisions, and analyzing the consequences of these decisions on market prices, returns, and resource allocations. The above is an understanding of the definition and content of management and economics, including psychological factors that determine the level of rational behavior of an individual in decision-making and the nature of his or her interpersonal and intergroup interactions. The ultimate goal of behavioral economics is to increase the explanatory power of economics with the help of a realistic psychological base, because human behavior is not only the subject of economics but also of psychology and the social sciences as a whole. In this context, this review paper focuses on the “fine-tuned balance of the combination of management and economics and makes an analysis to reveal the possible linkages between them, concluding some feasible, exploitable remarks and recommendations as well in the field of everyday running business at the companies.

Keywords

EN

behavioral economics; psychological factors; company management; human behavior

PL

ekonomia behawioralna; czynniki psychologiczne; zarządzanie firmą; zachowania ludzkie

• Publisher: Zachodniopomorska Szkoła Biznesu w Szczecinie
• Journal: Zeszyty Naukowe ZPSB Firma i Rynek
• Year: 2023
• Issue: 2(64)
• Pages: 33-53

Dates

published

2023

Contributors

author

Zoltán Peredy

• Edutus University, Hungary

author

Sujit Chaudhuri

• Pan-European University, Slovak Republic

author

Jinzhao Li

• Edutus University, Hungary

References

• Aditi Abhyankar (2019): Behavioural Economics Towards Better Decision Making; Journal of Global Economy, Volume 16 No 2 (Special Issue, SNDT Womens’ University Conference Proceedings), National Conference, ISSN (online): 2278-1277
• Ajzen, I. (1991): The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50, 179-211. DOI: https://doi.org/10.1016/0749-5978(91)90020-T; URL: https://www.sciencedirect.com/science/article/abs/pii/074959789190020T
• Andreea Gradinaru (2014): The Contribution of Behavioral Economics in Explaining the Decisional Process; Procedia Economics and Finance 16; 417 – 426; doi: 10.1016/S2212-5671(14)00821-1; License: CC BY-NC-ND 3.0
• Antony Patt and R. Zeckhauser (2002): Action Bias and Environmental Decisions; Journal of Risk and Uncertainty, 21:1; 45-72, URL: https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.454.9418&rep=rep1&type=pdf
• Carsten A. Holz: Working Paper No. 471, Chinese Statistics: Classification Systems and Data Sources 2013 https://kingcenter.stanford.edu/sites/default/files/publications/471wp.pdf
• Cheng Yongjia, Yang Liping (2017): School, of, Psychology, Nanjing. Fighting Prejudice: Social Behavior as a Prejudice Reduction Strategy Issue 4
• Dan Lovallo, Olivier Sibony (2010): Applying behavioral strategies to eliminate decision-making biases, The case for behavioral strategy, Issue 6
• Eugene F. Fama and Kenneth R. French (2010): „Luck and Skills in the Crossover of Mutual Fund Income”, Journal of Finance, Issue 1. LXV, №5, http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.479.3099&rep=rep1&type=pdf
• Frédéric Vallée-Tourangeau, Neville G. Austin & Sandra Rankin (1995): Inducing a Rule in Wason’s 2–4–6 Task: A Test of the Information-Quantity and Goal-Complementarity Hypotheses, The Quarterly Journal of Experimental Psychology Section A, 48:4, 895-914, DOI: 10.1080/14640749508401422
• Goodwin CJ, Goodwin KA (2013): Psychological Research: Methods and Design. 7th edition. New Jersey: John Wiley and son; ISBN-13: 978-1118360026
• Gray PO. (2011). Psychology. The Sixth Edition. New York: Value Press; ISBN-13: 978-1429258661
• J. David Johnson (2008) A Review of: “Groopman, J. (2007). How Doctors Think”, Journal of Health Communication, 13:7, 715-717, DOI: 10.1080/10810730802415324
• Jenifer E. Miller, Elinor Amitt, Ann-Christin Posten (2016): Behavior Economics - Encyclopedia of Global Bioethics DOI: 10.1007/978-3-319-09483-0_37; URL: https://www.researchgate.net/ publication/305377222_Behavioral_Economics
• Jonathan Levin and Paul Milgrom (2004): Introduction to Choice Theory. https://web.stanford. edu/~jdlevin/Econ%20202/Choice%20Theory.pdf download on September 3, 2023.
• John C. Driscoll and Steinar Holden: Implications of insights from behavioral economics for macroeconomic models, SSRN Electronic Journal 2014, pp. 1-33, DOI: 10.2139/ssrn.2423096, URL: https://www.researchgate.net/publication/315429848_Behavioral_Economics_and_ Macroeconomic_Models
• Kahneman, D., & Tversky, A. (1984). Choices, values, and frames. American Psychologist, 39(4), 341– 350
• Karla Hoff (2015): Behavioral Economics and Social Exclusion: Can Interventions Overcome Prejudice?; Policy Research Working Papers; World Bank Group; doi: https://doi.org/10.1596/18139450-7198
• Klayman, J. & Ha, Y.-W. (1987). Confirmation, disconfirmation and information in hypothesis testing. Psychological Review, 94, 211-228
• Mahmoud Yousef Askari and Ghaleb A. El Refae (2019): The Rationality of Irrational Decisions: A New Perspective of Behavioral Economics; Int. J. Economics and Business Research, Vol. 17, No. 4:388-401; doi: 10.1504/IJEBR.2019.10020190
• Niels Geiger (2016): Behavioural Economics and Economic Policy: A Comparative Study of Recent Trends Oeconomica; Vol. 6-1, 81-113 pages. DOI: https://doi.org/10.4000/oeconomia.2230; URL: https://journals.openedition.org/oeconomia/2230
• Paula-Elane Diacon (2014): From Economic Behaviour to Behavioural Economics, Oeconomica Vol. 10, no. 1, pp. 171-180 URL: https://www.researchgate.net/publication/304215489_From_ Economic_Behaviour_to_Behavioural_Economics
• Rieger, M. O., Wang, M., & Hens, T. (2015). Risk preferences around the world. Management Science, 61, 637–648.
• Samuelson, W., Zeckhauser, R (1988): Status quo bias in decision making. J Risk Uncertainty 1, 7–59 pp. https://doi.org/10.1007/BF00055564
• Sanderson CA. (2010): Social Psychology. First Edition. New Jersey: John Wiley and son
• Tansif ur Reman (2016): Historical context of behavioral economics, Intellectual Economics Volume 10, issue 2, pages 128-132 DOI: https://doi.org/10.1016/j.intele.2017.03.006, URL: https://www. sciencedirect.com/science/article/pii/S1822801116300297
• Yan Yue (2014): Human Resource Management under Enterprise Strategic Perspective, International Conference on Education, Management and Computing Technology (ICEMCT 2014) pp. 185-189 published by Atlantic Press URL: .: https://download.atlantis-press.com/article/13061. pdf
• Yu Xiaoyu, Cai Li (2010): Failure learning behavior, strategic decision-making and entrepreneurial enterprise innovation performance, Issue 12
• Wang Caiyu (2013): The Trait Theory, Situational Theory and Application of Consumer Decision-Making
• Adam Hayes: Guide to Economics https://www.investopedia.com/terms/e/economics.asp download on September 5, 2023
• Alain Samson (2014): An Introduction to Behavioral Economics https://www.behavioraleconomics.com/resources/introduction-behavioral-economics/ download on September 16, 2023
• Artur Mello (2020): Data Science and Behavioural Economics. Understanding our biases through data https://towardsdatascience.com/data-science-and-behavioural-economics-96641ab83d08 downloaded on September 22, 2023
• CFI: Management Theories. Concepts surrounding recommended management strategies https://corporatefinanceinstitute.com/resources/careers/soft-skills/management-theories/ downloaded on September 5, 2023
• Ivy Panda (2020): Behavioral Economics in China Research Paper, https://ivypanda.com/essays/behavioral-economics-in-china/ download on September 29, 2023.
• Jim Cahn (2015): „Active vs. Passive Investing: Are These Really the Only Two Options?” Forbes; . https://www.forbes.com/sites/jamescahn/2015/04/22/active-versus-passive-these-are-the-only-two-options/#3c982dd92be8; downloaded on September 16, 2023.
• National Bureau of Statistics of China (2020): http://www.stats.gov.cn download on September 30, 2023.
• Smith, Tamsin. BCG: China to Drive 70 Percent of Global Luxury Growth by 2024. Jing Daily. Web. 2018, https://jingdaily.com/bcg-china-luxury-2024/ download on September 10, 2023.
• Will Kenton: Self-Interest https://www.investopedia.com/terms/s/self-interest.asp download on September 06, 2023

Identifiers

Biblioteka Nauki

33777460