Experimental economics has adopted a different psychological theory from behavioral economics. Contrast the two psychological theories...

Experimental economics has adopted a different psychological theory from behavioral economics. Contrast the two psychological theories and explain how they fit in economics. explain why the psychological theory of behavioral economics is not appropriate for experimental economics.

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Expert Solution

Experimental economics means that it is the applicability of a number of experiments into the economics to calculate or estimate the a range of effects and adjustments in the market variability and mechanisms.
Behavioral economics skill that it is the learn about of psychological, cultural and social factors of the men and women making choices in the organisations. It is very beneficial to comprehend the folks thought if they are capable of doing that precise work.

The major psychological theories are based on
1) Biological
2) Cognitive
3) Humanistic

Experimental economics adopted extraordinary psychological concept from behavioral economics, some are match in the economics,some are not appropriate for experimental economics. Basically in experimental economics they are having many experiments to understand about the advertising and marketing strategies and mechanisms, while that it is an appropriate one.

In these terms the experimental economics cant have any scope in the future, so it is now not fantastic to the economics. When the research are going everytime discovering new matters and they cant be sophisticated or modified by means of the present theories so in experimental economics there is no scope for psychological theories.

Rahul Sunny answered 1 year ago

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