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  • Titill er á ensku Behavioral economics and the Icelandic economic wonder : is it in our nature to make irrational decisions?
  • Bakkalár
  • Útdráttur er á ensku

    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.

  • 2.8.2011

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