An Introduction to Behavioral Economics by Professor Jan Wang
An Introduction to Behavioral Economics by Professor Jan Wang
SME Vision is a video program produced by School of Management and Economics (SME) of The Chinese University of Hong Kong, Shenzhen. In this program, SME News Service will invite professors from SME to introduce the Science of Management and Economics, and let more people to learn about it. In these videos, professors will share their knowledge on the topics they have chosen.
October 2017
US economist Richard H. Thaler won the Nobel Prize for Economics for his contribution in the area of behavioral economics. Judge Peter Gardens said that Richard’s contribution has made Economics more in line with human nature. In our second program, we have invited Professor Wang to talk about Behavioral Economics.
·Mental Accounting
·Overconfidence
·Loss Aversion
About the Speaker
Professor Jian Wang, the assistant dean of School of Management and Economics of The Chinese University of Hong Kong (Shenzhen), also works as an associate professor of SME. Professor Wang is currently working on issues related to International Finance, Monetary Policy, International Trade, Behavioral Finance and Behavioral Economics. He received his Ph.D. and M.A. from University of Wisconsin-Madison.
About Behavioral Economics
Behavioral Economics was once a disputed subject and viewed as non-mainstream economics. It combines behavior analysis theory with the economic operation rule. Moreover, it uses people's psychological phenomena and deviation analysis investment behavior to forecast the market situation. Nowadays, Behavioral Economics is gradually breaking the concept of efficient market and rational behavior in traditional economics. It argues that there widely exists some "irrational" behaviors in the market, whereas in most cases, the market generally remains in its highly effective state. At present, the research methods and achievements of Behavioral Economics are widely accepted in both the academia and the public.
In this program,
Professor Wang introduces common behavioral biases such as mental accounting and overconfidence, and explains the causes of human behavioral biases in modern society from an evolutionary perspective. By introducing the rational basis of these seemingly irrational behaviors, we hope that this program will lead you towards a preliminary understanding of behavioral economics. It is believed that this theory of "making economics more human" will provide theoretical and practical guidance for people in many practical decisions, such as project investment and capital management.
