Behavioral Economics: The New Approach To Designing The Paternalistic Role Of The State In The Economy
Behavioral Economics: The New Approach To Designing The Paternalistic Role Of The State In The Economy

Summary/Abstract: The idea about the significance of the psychological dimension of human behavior is not new and it has existedin the social sciences since long time ago. In accordance with this,this paper attempts to base economic analysis on psychological research, which is manifested in economic theory through the affirmation of behavioral economics. The paper emphasizes the importance of ‘new behavioral economics’, which, on the basis of rejecting the concept of maximizing rationality, opens a new dimension of understanding of the justification of government interference in the sphere of economy and society. In relation to this,the paper discusses the implementation of paternalistic measures and interventions directed toward correcting and reducing numerous cognitive mistakes and psychological anomalies created during the realization of economic decision making.

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