Work detail

Irrational Behaviour

Author: Bc. Tomáš Vlach
Year: 2014 - summer
Leaders: Ing. Ivo Koubek
Work type: Bachelors
Language: English
Pages: 69
Awards and prizes: B.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance.
Abstract: This thesis questions the notion of rationally behaving individuals as an as-
sumption of microeconomic and macroeconomic models. Its goal is to show
that foundations on which the modern economics is built are not so much solid.
Selected topics are discussed theoretically and subsequently confirmed empir-
ically by existing research studies. Afterwards, they are extended by related
findings and potential implications for human behaviour. The thesis contains
examples of irrational behaviour in which it is possible to behave rationally as
well as examples in which it is very difficult to do so. The results imply that
irrationality is present in many different domains. Because the assumption of
rationality is repeatedly violated, economic models are not able to properly
describe and predict human behaviou


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