Unveiling the Intricate Relationship Between Economics and Psychology

Join us on a captivating exploration as we uncover the profound connection between economics and psychology. Contrary to popular belief, economics is not a standalone discipline but rather an integral branch of psychology. It delves into the intricacies of individual and mass behavior, shedding light on the complex dynamics that shape our economic systems.
In this thought-provoking video, we challenge the conventional approach of economists who often rely on complex mathematical models instead of embracing the power of common sense and direct experimentation. By doing so, they inadvertently create a disconnect between economic theory and its real-world subjects
While economic theory assumes that individuals are constantly driven by rational self-interest, we delve into the limitations of this model and highlight the importance of recognizing the influence of non-rational behavior in certain situations. We explore the concept of "self-interest" and its inherent complexities, revealing that it is not a straightforward pursuit but rather a nuanced interplay of preferences and motivations.
Our discussion goes beyond the traditional economic framework to address the shortcomings of the theory in predicting phenomena such as "strong reciprocity" and reciprocal altruism. These phenomena challenge the notion of purely rational decision-making and highlight the intricate interplay between selflessness and self-interest.
Join us as we bridge the gap between economics and psychology, unraveling the fascinating dynamics that shape our economic systems and challenging the traditional assumptions that underpin economic theory.