Does Economic Knowledge Create Advantage in Improving Bounded Rationality?

Abstract

Behavioral economics tries to find the psychological laws behind economic decisions by substituting bounded rationality for traditional economics' full assumption of idealized rationality. The aim of this study is to reveal whether the economic knowledge possessed by decision units provides advantages for rational decisions. Accordingly, our hypothesis is that having economic knowledge cannot correct the bounded rationality. In the study, a survey was carried out within the scope of the quantitative method, and ten intuitive topics that are thought to be directly opposed to the rationality assumption from the cognitive bias and heuristics literature. The universe of the research consists of the students of the Faculty of Economics and Administrative Sciences and Faculty of Education, studying at Muğla Sıtkı Koçman University. In the study, it has been concluded that the decision units are bounded rational and economic knowledge does not rationalize preferences.

Keywords

• Rationality
• traditional economics
• behavioral economics
• bounded rationality
• cognitive bias and heuristics

İktisadi Bilgi Sınırlı Rasyonelliği İyileştirmekte Avantaj Yaratır Mı?

Abstract

Davranışsal iktisat, geleneksel iktisadın tam bilgi ile idealize edilmiş rasyonellik varsayımının yerine sınırlı rasyonelliği koyarak, iktisadi kararların ardındaki psikolojik yasaları bulmaya çalışmaktadır. Bu çalışmanın amacı, karar birimlerinin sahip oldukları iktisadi bilginin rasyonel kararlar için avantaj sağlayıp sağlamadığını ortaya çıkarmaktır. Bu doğrultuda hipotezimiz, iktisadi bilgi sahibi olmanın sınırlı rasyonaliteyi düzeltemeyeceğidir. Çalışmada nicel yöntem kapsamında anket çalışması gerçekleştirilmiş; bilişsel eğilim ve kısa yollar literatüründen rasyonellik varsayımına doğrudan karşıt olduğu düşünülen on sezgisel konu sınanmıştır. Araştırmanın evreni, Muğla Sıtkı Koçman Üniversitesi’nde öğrenim gören İİBF ve Eğitim Fakültesi öğrencilerinden oluşmaktadır. Yapılan çalışmada karar birimlerinin sınırlı rasyonel olduğu ve iktisadi bilginin tercihleri rasyonelleştirmediği sonuçlarına ulaşılmıştır.

Keywords

• Rasyonellik
• Geleneksel İktisat
• Davranışsal İktisat
• Sınırlı Rasyonellik
• Bilişsel Eğilim ve Kısa Yollar

References

1. Akın, Z., & Urhan, Ü. B. (2015). Davranışsal Oyun Teorisi. D. Dumludağ, Ö. Gökdemir, L. Neyse, & E. Ruben içinde, İktisatta Davranışsal Yaklaşımlar (1. b., s. 257-318). Ankara: İmge.
2. Aktan, C. C. (2018). Yeni İktisat Okulları ve İktisadi Düşünce (Gözden geçirilmiş ve Yenilenmiş 3. b.). Ankara: Seçkin.
3. Altunöz, U., & Altunöz, H. (2017). Davranışsal Ekonomi (Nörofinans) (Güncellenmiş 2. b.). Ankara: Seçkin.
4. Ariely, D., Loewenstein, G., & Prelec, D. (2003). Coherent Arbitrariness": Stable Demand Curves without Stable Preferences. The Quarterly Journal of Economics , 118 (1), 73-105.
5. Arkes, H. R., & Blumer, C. (1985). The Psychology of Sunk Cost. Organizational Behavior and Human Decision Processes , 35, 124-140.
6. Baker, M., Pan, X., & Wurgler, J. (2012). The Effect of Reference Point Prices on Mergers and Acquisitions. Journal of Financial Economics , 106 (1), 49-71.
7. Barberis, N. (2011). Psychology and the Financial Crisis of 2007- 2008. Yale Univrsity .
8. Bayram, S. S. (2014). Finansal Okuryazarlık ve Para Yönetimi Davranışları: Anadolu Üniversitesi Öğrencileri Üzerine Bir Araştırma. Uluslararası Yönetim ve İşletme Dergisi , 2 (2), 105-135.

9. Berg, J., Dickhaut, J., & McCabe, K. (1995). Trust, Reciprocity, and Social History. Games and Economic Behavior , 10 (1), 122-142.
10. Brockner, J., Shaw, M. C., & Rubin, J. Z. (1979). Factors Affecting withdrawal from an Escalating Conflict: Quitting Before It's too Late. Journal of Experimental Social Psychology , 15 (5), 492-503.
11. Camerer, C. F. (1999). Behavioral Economics: Reunifying Psychology and Economics. Proceedings of the National Academy of Sciences , 96, 10575–10577.
12. Camerer, C. F., & Loewenstein, G. (2004). Behavioral Economics: Past, Present, Future. C. F. Camerer, G. Loewenstein, & M. Rabin içinde, Advances in Behavioral Economics (s. 3-53). New York: Princeton Univercity Press and Russell Sage Foundation.
13. Camerer, C., Babcock, L., Loewenstein, G., & Thaler, R. (1997). Labor Supply of New York City Cabdrivers:One Day at a Time. The Quarterly Journal of Economics , 112 (2), 407-441.
14. Carpenter, J. P., Burks, S., & Verhoogen, E. (2005). Comparing Students to Workers: The Effects of Social Framing on Behavior in Distribution Games. Research in Experimental Economics , 10, 261-290.
15. Chapman, G. B., & Johnson, E. J. (1994). The Limits of Anchoring. Journal of Behavioral Decision Making , 7 (4), 223-242.
16. Charness, G., & Gneezy, U. (2000). What Is a Name? Anonymity and Social Distance in Dictator and Ultimatum Games. Journal of Economic Behavior & Organization , 68 (1), 29-35.
17. Commentary. (2014). Behavioral Finance: Loss and Regret Aversion. 22 07, 2019 tarihinde SEI: https://seic.com/sites/default/files/inline-files/Behavioral%20Finance%20Loss%20and%20Regret%20Aversion.pdf adresinden alındı
18. Çitilci, T. (2015). Para & Psikoloji ( 2. b.). İstanbul: Beta.
19. Demeulenaere, P. (2014). Are there many types of rationality? Papers - Revista de Sociologia , 99 (4), 515-528.
20. Dobelli, R. (2013). Hatasız Düşünme Sanatı. İstanbul: NTV Yayınları.
21. Ellingsen, T., Johannesson, M., Mollerstrom, J., & Munkhammar, S. (2012). Social Framing Effects: Preferences or Beliefs? Games and Economic Behavior , 76 (1), 117-130.
22. Epley, N., & Gilovich, T. (2006). The Anchoring-and-Adjustment: Why the Adjustments Are Insufficient. Psychological Science: Research Article , 17 (4), 311-318.
23. Er, F., Temizel, F., Özdemir, A., & Sönmez, H. (2014). Lisans Eğitim Programlarının Finansal Okuryazarlık Düzeyine Etkisinin Araştırılması: Türkiye Örneği. Anadolu Üniversitesi Sosyal Bilimler Dergisi , 14 (4), 113-126.
24. Fehr, E. (2009). Social Preferences and the Brain. P. W. Glimcher, C. F. Camerer, E. Fehr, & R. A. Poldrack içinde, Neuroeconomics: Decision Making and the Brain (1.Baskı b., s. 215-230). Academic Press-Elseiver.
25. Fehr, E., Kırchsteiger, G., & Riedl, A. (1993). Does Fairness Prevent Market Clearing? An Experimental İnvestigation. The Quarterly Journal of Economics , 108 (2), 437-459.
26. Frederick, S., Loewenstein, G., & O’Donoghue, T. (2002). Time Discounting and Time Preference: A Critical Review. Journal of Economic Literature , 40 (2), 351-401.
27. Freedman, J. L., & Fraser, S. C. (1966). Compliance without Pressure: The Foot-in-the-Door Technique. Journal ol Personality and Social Psychology , 4 (2), 195-202.
28. Gazel, S. (2015). The Regret Aversion as an Investor Bias. International Journal of Business and Management Studies , 4 (2), 419-424.
29. Hayek, F. A. (1994). Kanun, Yasama Faaliyeti ve Özgürlük (Kurallar ve Düzen) (Cilt 1). (A. Yayla, Çev.) Ankara: Türkiye İş Bankası.
30. Hill, R., & Myatt, T. (2017). İktisat: Eleştirel Ders Kitabı (1. b.). (H. Bilir, Çev.) Ankara: Heretik.
31. Kahneman, D. (2018). Hızlı ve Yavaş Düşünme (8. b.). (O. Ç. Deniztekin, & F. N. Deniztekin, Çev.) İstanbul: Varlık.
32. Kahneman, D., & Tversky, A. (1984). Choices, Values, and Frames. American Psychologist , 39 (4), 341-350.
33. Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision Under Risk. Econometrica , 47 (2), 263-291.
34. Kırmızıaltın, E. (2017). İktisat ve Rasyonalite: K.Marx, W.S. Jevons ve T.B. Veblen'de Rasyonalite, İnsan, Teori (1. b.). Ankara: Heretik.
35. Knight, F. H. (1964). Risk, Uncertainty and Profit (5. b.). New York: Augustus M. Kelley / Sentry Press.
36. Knoll, M. A. (2010). The Role of Behavioral Economics and Behavioral Decision Making in Americans' Retirement Savings Decisions. Social Security Bulletin , 70 (4), 1-23.
37. Loewenstein, G., & Prelec, D. (1992). Anomalies in Intertemporal Choice: Evidence and an Interpretation. Quarterly Journal of Economics , 107 (2), 573-597.
38. Loomes, G., & Sugden, R. (1982). An Alternative Theory of Rational Choice Under Uncertainty. The Economic Journal , 92 (368), 805-824.
39. Lusardi, A., Mitchell, O. S., & Curto, V. (2009). Financial Literacy among the Young: Evidence and Implications for Consumer Policy. NBER Working Paper Series (15352 ), 1-34.
40. Maldonato, M., & Dell'orco, S. (2010). Toward an Evolutionary Theory of Rationality. World Futures , 66 (2), 103-123.
41. Mazur-Wierzbicka, E. (2018). Mainstream Economics Versus Behavioral Economics—A Contribution to Reflection. K. Nermend, & M. Łatuszyńska içinde, Problems, Methods and Tools in Experimental and Behavioral Economics (s. 3-21). Switzerland, Switzerland: Springer .
42. Miller, K. D. (2008). Simon and Polanyi on Rationality and Knowledge. Organization Studies , 29 (7), 933-955.
43. Mussweiler, T. (2001). The Durability of Anchoring Effects. European Journal of Social Psychology , 31 (4), 431-442.
44. Nagaj, R., & Žuromskaitė, B. (2018). The Role of Behavioral Methods Used in Research on Tourism Development. Kesra Nermend, & Małgorzata Łatuszyńska içinde, Problems, Methods and Tools in Experimental and Behavioral Economics (s. 331-342). Switzerland: Springer.
45. Northcraft, G. B., & Neale, M. A. (1987). Experts, Amateurs, and Real Estate: An Anchoring-and- Adjustment Perspective on Property Pricing Decisions. Organizational Behavior and Human Decision Processes , 39, 84-97.
46. Northcraft, G. B., & Wolf, G. (1984). Dollars, Sense, and Sunk Costs:A Life Cycle Model of Resource Allocation Decisions. Academy of Management Review , 9 (2), 225-234.
47. Pompian, M. M. (2006). Behavioral Finance and Wealth Management: How to Build Optimal Portfolios That Account for Investor Biases. New Jersey: John Wiley & Sons.
48. Prelec, D., & Simester, D. (2001). Always Leave Home Without It: A Further Investigation of the Credit-Card Effect on Willingness to Pay. Marketing Letters , 12 (1), 5-12.
49. Rabin, M. (2002). A Perspective on Psychology and Economics. European Economic Review , 46, 657-685.
50. Ritter, J. R. (2003). Behavioral Finance. Pacific-Basin Finance Journal , 11 (4), 429-437.
51. Roth, S., Robbert, T., & Straus, L. (2015). On the sunk-cost effect in economic decision-making: a meta-analytic review. Business Research , 8, 99–138.
52. Schafer, K. (2018). A Brief History of Rationality: Reason, Reasonableness, Rationality, and Reasons. Manuscrito , 41 (4), 501-529.
53. Sen, A. (2004). On Ethics and Economics (Gözden Geçirilmiş 1. b.). USA/UK/Australia: Blackwell .
54. Simon, H. A. (1955). A Behavioral Model of Rational Choice. The Quarterly Journal of Economics , 69 (1), 99-118.
55. Simon, H. A. (1976). From Substantive to Procedural Rationality. T. J. Kastelein, S. K. Kuipers, W. A. Nijenhuis, & G. R. Wagenaar içinde, 25 Years of Economic Theory (s. 65-86). Boston: Springer.
56. Simon, H. A. (1972). Theories of Bounded Rationality. C. B. McGuire, & R. R. (eds.) içinde, Decision and Organization (s. 161-176). North-Holland Publishing Company.
57. Stanovich, K. E. (1999). Who is Rational? New Jersey: Lawrence Erlbaum Associates.
58. Staw, B. M. (1976). Knee-Deep in the Big Muddy: A Study of Escalating Commitment. Organizational Behavior and Human Performance , 16, 27-44.
59. Tversky, A., & Kahneman, D. (1974). Judgment Under Uncertainty: Heuristics and Biases. Science New Series , 185 (4157), 1124-1131.
60. Tversky, A., & Kahneman, D. (1981). The Framing of Decisions and the Psychology of Choice. Science , 211 (4481), 453-458.
61. Wilson, T. D., Houston, C. E., Etling, K. M., & Brekke, N. (1996). A New Look at Anchoring Effects: Basic Anchoring and Its Antecedents. Journal of Experimental Psychology , 125 (4), 387-402.
62. Yılmaz, F. (2009). Rasyonalite/ İktisat Özelinde Bir Tartışma. İstanbul: Paradigma.