Definitions about Behavioral economics

Elasticity, in Economics is the equivalent to the percentage change between x and y. It is also defined as the degree of responsive (for example, supply drives demand in the short run). If, for example, a shop lowered its prices by  95%, that is, a bulky discount, would one expect the consumers to rush in the store, and empty every good available for sale? The first thing the in mind that comes is doubt, primarly of unthinkable rebate itself, and then of the quality of the goods. The consumer will doubt heavily.

Self promotion contains the risk of revealing important, key information. By doing so,  the individual is unaware of the data he is providing to the public, who is capable of exploiting and thus transforming it for their personal use. The transfer of information, if about judgement statements about a person, are rumours that can be inevitably harmful. Lack of data isolates an individual from reaching out the truth and therefore reduces the capability of someone to access essential, yet disruptive information.

Information is just like a good like any other, as well as money, and time*.    The exchange of money vs time. (such private appointments, jet flights, movie tickets*  A movie ticket is a unit of exchange. The exchange of time vs money (work, study* For studying, in the future it generates return. The exchange of money or information against information

In a conversation (text, call or in person), what kind of information should you “trade”,(telling the interlocutor), or give valuable knowledge. There must be an equilibrium. However, there is asymmetric information

Another type of risk lies under high pressure situations (unpredicability-driven)

Because, psychologically and biologically, the individual is composed of different personality traits. Why is so? An author, Stevenson have already forecasted this theory in one of his novels. The following set of assumption proves this:

Let an discussion of two indivuals take place. One of them observes that the other, in their past days, has encountered a weird dilemma. This resulted, as for decision making, a disquieting amount of perplexity, which to a contradictory mindset and confrontation between several spirits within the individual’s consciousness.

The disturbance multiplier (or chaotic situation setter CSS) is a constant that depends on the initial environment state IES) degree of, the quantity of present individuals, and several other elements. The following states will depend on the interaction between parties, and a case called uneven weights will be created. This situation is due to alliances being hold within individuals (just like military warfare). Neutrality, gaining allies or targetting a particular entity are possible options.

Impulsive behavior is emotionally driven.

Avoiding physical confrontation (emotion amplifier or multiplier) degree of intensity of interaction between two individuals could be largely beneficial, because it does not give rise to undesired feelings. A repeated trigger * will increase the overall vehemence of the individual by an exponential integer. (The question of exact value, which set to be the constancy of the number itself , is not taken into account)

Reminders are very important (as it is memory-based), as factors to success. The expected value, or average of its degree of importance is zero. (=> If the sum is zero, then the expected value also is.).

Priority is also a weight-heavy factor. Achieving a task before another could create a huge difference. The following assumptions explained above. Part of the explanation is within the Eisenhower’s matrix. The Urgent/Important principle is a simplification. Behind this, intuition leads to the fact that there are many distinct categories of tasks, depending on the environment (which involves an implicit cost – economic concept. In addition, difficulty of the task and whether it requires physical labor or human intelligence; the prepration, involving all the steps plus the material needed is considered as well. One more element is the preferences for the task.

However, the irrational mindset of procrastinating  is a often present, even sometimes at very alarming deadlines. Just saying to do the task enough at a certain extent. As motivation becomes fuel for action, willpower drives, and times metamorphoses into the path we take.  We might want to know how this process of transmation is made?

Success (S) depends on several factors: performance, luck, perseverance, discipline, just to name a few. And those factors, or sub-variables, depends on others variables. Example:

Perseverance (P) : Constant Standard Deviation of Performance over time                         Discipline (D) = Constant Willingness + Positive Thinking                                                           Where positive thinking equals motivation-driven thoughts (for example gettings ways to channel it, in multimedia) + Wish to Succeed

Self-Discipline could be translated by Mastering of the self or self-control, which are both key to success.

Latency. When delaying an action, (time factor), depending on the context, it might create

Similarly, when proceding too early, the. The right timing is vital in decision making, as it is the core detail for analysis of our next question.



Is Performance synonym of Return (Outcomes resulted from the flow of actions)

The proverb: sows the wind reaps the whirlwind (However, when dealing with numerical values, it is difficult to make gross simplications when changing the signs.

In Microeconomics, The marginal Willingness to pay is equal to the price of the good. In this model, the expected value marginal will power is equal to zero(the inverse, or negative, of willingness is reluctance), if in the long-term it is constant.

Impulsive behavior is emotionally driven.

Brain-Challenging activity takes away, thought of mind (TOM), current idea, inspiration 

These activity stimulate desire for food; furthermore, they create the desire to restart the process*.

Mind. Width of activity (also known as the range of focus) is the opposite of the depth of activity (known as the extent of focus).

Definition of Straightforwardness, Implicit and Explicit

Limit or Critical Value. In Calculus, the limit in derivatives.  In Statistics,The critical value in hypothesis testing

Where does (Mental) Energy comes from? A good night’s sleep is the basis, along with excellent nutrition and phyical exercice. These are the vital prerequisites to Energy. Artifically (the term is amibiguous), or psychologically, a happy event can channel positive energy, but sometimes can lead to unwanted activities, unintented consequences due to impulsive behavior. It is similar to fire, and to appease fire one needs water, which is the equivalent of taking breaks.

Trade. Fundamental Concept in Economics, trade provides stability to the economy. Trade sometimes create disequilibrium, but more likely to generate. It is the opposite of

The process of accumulation. Let the following: One assumes that total production is never negative.

Collective benefit vs individual benefit

In Statistical models, we can predict a set of data (numerical values), or quantitative figures. In our model we can predict qualitative and quantitative data.

If we generalise the concept of standard deviation, its application becomes much broader. For example, with the piano for reference, the middle C  is the <em>mean</em> of all possible values, because it is centered. Thus, the expected value the sum of  any notes above or below it will be the same.

Predict consequences: When doing so, time plays a crucial role.  It is possible to use a single factor regression analysis? Time is linear,

Moreover, confidence intervals is another method of delineating the possible range of values for a given variables. However, for Economics and Statistics, the main problem is the a surface graph; an additional variable would form a three dimensional representation that would not be convenient for the given data. Matrices could work, as they are studied in Linear Algebra. We will discuss them later on.

Similarly, what can we predict with respect to space? By observing

Because change is time driven, and only time is itself is utterly insufficient but space provides materialistic setting for calculating so. It is like listening without perceiving.*

The idiom” Lose a dollar to save a penny.” describes well many facets of life. In Chess, for the sake of a pawn (that is centered, crucial to control territory), one might exchange pieces, gaining back that pawn, at the stake of losing positional advantage.* Interesting fact that is, what enlightens curiosity to this problem is the unthinkable motive to act so. When we think from the outside, gaining an exterior point of view, our horizon broadens. We might think as well to provide ourself this perspective, however it needs to employ imagination, located to gray matter of the brain. Reconsider. Think twice, if not multiple times, for money involving purchases (a purchases can be done in other ways), life changing decisions, key information spreading and so on.

Quality vs Quantity. The first one is often preferred to the second one, mainly because of

Lying and honesty

Illusion vs Reality


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