An Application of Basic Economics Concepts to Behavioral Economics

Using the articles by Quah, Soh and Tan (2017) ‘Why Thaler matters: A rational look at behavioral economics’ and Khanna (2017) ‘Nudging companies to do the right thing’ from The Straits Times as a starting point show how the economics concepts can be applied to a contemporary economics issue.

The following economics concepts may be considered in your analyses:
• Axioms – you can question whether economic agents are always rational and consistent, is more always better than less or can you have too much of something, are consumers the perfectly rational utility-maximizing decision-makers, and bring in alternative concepts in behavioral economics.
• Preferences / Indifference curves – you can discuss the intertemporal stability of preferences and bring in concepts of time inconsistency – self-control etc.
• Marginal rate of substitution – you can question how economic agents value goods and services, and how the endowment effect can affect how individuals place value on things.
• Budget constraint – you can extend the discussion to intertemporal choice, time value of money, etc.
• Choice / Consumer equilibrium – you can discuss how framing, anchoring, bracketing can affect choice.

ALSO, It is preferred to show understanding from the uploaded file – of Chapter 31 of [Varian H.R.] Intermediate Microeconomics 9e & Chapter 19 [Robert Pindyck, Daniel Rubinfeld] Microeconomics 9e in your analyses.

In your analyses, you are required to discuss real-world examples from your personal experiences and how these insights could be applied to your work and/or personal lives.

Develop logical and coherent responses to the issues raised above. The opinions or decisions that are presented should be supported by references to appropriate texts, articles, websites, and current economics practice. It is recommended that at least five (5) more articles be reviewed.

The following lists of deadlines and requirements should be adhered to. Failure to do so will result in a lower grade on the project.


The paper should
• be typed and double spaced.
• flow as a well-documented coherent, committee paper.
• cite all sources.
• have correct formats for the bibliography, footnotes, and references.
• have on the first page of the paper, the title of the paper, the author’s names; and
• have an executive summary.

Quality is the most appropriate determinant of the grade awarded but it is suggested that approximately 2,000 words be a suitable length.

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