Behavioral economics and the Icelandic economic wonder : is it in our nature to make irrational decisions?
Is it in out nature to make irrational decisions? This research is done after the economic collapse in Iceland in 2008 and in the midst of a following recession. This research looks at decision-making in economic context using the discipline of behavioural economics. It puts forth an argument that w...
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| Format: | Thesis |
| Language: | Icelandic |
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2011
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| Online Access: | http://hdl.handle.net/1946/9805 |
| Summary: | Is it in out nature to make irrational decisions? This research is done after the economic collapse in Iceland in 2008 and in the midst of a following recession. This research looks at decision-making in economic context using the discipline of behavioural economics. It puts forth an argument that we are pre-determined to make irrational decisions that are systematic and can therefore be predicted. This research looks to Iceland and uses examples of Icelandic economic and political life in the years 2006-2008 to demonstrate that important factors leading to the collapse were due to predictably irrational decisions. The hypothesis of this research is therefore that Iceland’s collapse could have been predicted and potentially avoided. The research shows that the hypothesis is only partially true, whereas the economic collapse could have been predicted but, on the other hand very unlikely to be avoided due to society’s myopic view towards its own success and in general a rather hostile behaviour towards those that put forth criticism. |
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