Psycho-logical marketing

Abstract

The Nobel Prize for economics has twice been won by psychologists. We now have fledgling disciplines called behavioral economics and economic psychology that look at how people make money decisions. But still it remains really difficult for those brought up on the neoclassical consumer-choice models to let go of the fundamental beliefs in simple, profound, and all-powerful rationality. People have tended to make decisions by weighing costs and benefits, particularly with money decisions.