Economic psychology

Economic psychology is the study of individuals and groups of people at the work place, in organizations and in markets. The scope of the subject matter is very broad. We focus on several research subjects, primarily on decisions encompassing risk.

In today’s world consumers, employees, executives, investors and even politicians are constantly under pressure to select one of many options on the labor, capital and other markets, i.e. to make decisions. Decisions are taken with the aim of maximizing benefits.

The classical model of rational behavior describes how business people behave in (simple) decision-making situations. In complex situations, however, it has been ascertained that people become „cognitive misers”, who often do not or cannot gather, read and reflect on all the necessary information. They sometimes make decisions on the basis of obvious but perhaps misleading information, and may be risk-averse or risk-seeking depending on the task to be fulfilled. It is worthwhile reflecting on the conditions under which non-ideal decisions are taken and how incorrect decisions can be avoided.