The Student Room Group
Uni students - Complete our survey >>
Uni students - Complete our survey >>
Uni students - Complete our survey >>

How do value judgements influence economic decision making and policy?

I have tried to find the answer for this online but I don't get it because the explanations are way too long and they are not straight to the point and they also use many examples. I would firstly like to have a simple explanation of why value judgements influence economic decision making and policy and then some examples just so I get a better understanding. Thanks in advance..


Posted from TSR Mobile
Original post by Hella Pachino
I have tried to find the answer for this online but I don't get it because the explanations are way too long and they are not straight to the point and they also use many examples. I would firstly like to have a simple explanation of why value judgements influence economic decision making and policy and then some examples just so I get a better understanding. Thanks in advance..


Posted from TSR Mobile


A value judgement is just that - a judgement. People will judge situations differently, and their judgement of a policy, or a decision will be different. Different people have different judgements on different things, and so whilst one person may judge that a policy will help reduce debt, another may judge that it'll worsen it.

We judge economic decisions and policies differently, just like we judge people differently...

Spoiler

Decision making systemsFollowing the lead of Nobel Prize winner, Daniel Kahneman, behavioural theorists often use the two systems model to explain how decisions are routinely made.System 1System 1 is automatic and uses short-cuts to make quick decisions, often based on common sense estimates and emotional reactions to choice.System 2System 2 is a more deliberate decision making process, using conscious thinking an reflection. System 2 is much slower than System 1, and hence, in situations where a quick decision is required, System 1 is often the dominant system. While System 1 is often more convenient, it is subject to biases and errors which can lead to irrational decision making. System 2 is, however, more easily manipulated - perhaps towards decision making that is harmful to individual consumers, and to third parties.I got this from http://www.economicsonline.co.uk/Behavioural_economics/Decision_making_systems.html

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you