21st century

evolution of economics
thinking
HANAA AND BEELA
Hello and welcome!
Are you guys
ready?
what is "behavioural
economics"?
 Introduction
It challenges the assumptions that we as a human act in a "economical rational"
manner when given choices in the market places.
Branch of economics that "incorporates the insights of psychology and
recognised that the choices consumers make are governed by many factors that
are not consistent with the assumptions behind the neoclassical models".
Pioneered by Richard Thaler who won the noble price in 2017
The argument is about the assumption of rational choices means that
neoclassical models are based on people that actually not exist
 Richard Thaler argued that "rational
choice" humans don't even exist
He reduced it down to "econs" and
"humans"

ECONS (NON-EXISTANCE) HUMANS (ALL OF US)

1. Are rational 1. Have bounded rationality
2. Have perfect information 2. Have incomplete information
3. Are extremely intelligent (able to
3. Are not as intelligent as Econs
perform complex calculations quickly)
4. Have consistent preferences over 4. Change their taste over time
time
 economics

WHAT IS THE CIRCULAR ECONOMY?

LINEAR ECONOMY

TAKE-MAVE-WASTE
Take the resources from the environment
Use them to produce new products
After several times, these products will be
thrown away and increase the production
of the garbage.
Create even more pollution into the
environment
CIRCULAR ECONOMY
Known as "regenerative and restorative"
Products specifically produced for a long-
lasting
The materials of products come from reusing
and recycling old products
Cost-saving and decrease pollution
Kate Reworth's embodded
economy is another
depiction of a circular
economy
THANK YOU