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A Humanising Economic Approach On Competition Policy Or How The Behavioral Economics Blends With “Traditional Economics”

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  • Liviana Andreea Niminet

Abstract

Behavioral are crucial for understanding both the consumer’s attitude and firms’ attitude as well as for understanding the market outcomes. The past ten years brought a lot of attention from researchers and policy-makers on the behavioral economics issue. Classical, traditional economic models rely on the assumptions of rationality and ordered preferences. Behavioral economics explores interactions between demand and supply including information framing, the use of heuristics in decision-making and time-inconsistent preferences. The research on behavioral economics has led to an extensive debate about the relative merits of both traditional and behavioral economics. First of all we propose to highlight the advantages and disadvantages of behavioral economics versus traditional economics on a very sensitive issue: the competition policy. Then we address market issues that can be solved by means of behavioral economics afterwards turning out attention to the remedies of behavioral economics and ,last but not least, the United Kingdom successful model on the matter of competition policy.

Suggested Citation

  • Liviana Andreea Niminet, 2015. "A Humanising Economic Approach On Competition Policy Or How The Behavioral Economics Blends With “Traditional Economics”," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 21.
    • Handle: RePEc:bac:fsecub:15-21-04
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    References listed on IDEAS

    as
    1. Liviana Andreea Nimineţ, 2009. "Competition Policy In Eu And Romania During The Economic Crisis," Romanian Economic Business Review, Romanian-American University, vol. 4(4), pages 89-94, Winter.
    2. Mark Armstrong & Steffen Huck, 2011. "Behavioral Economics as Applied to Firms: A Primer," Antitrust Chronicle, Competition Policy International, vol. 1.
    3. Mark Armstrong & John Vickers, 2012. "Consumer Protection and Contingent Charges," Journal of Economic Literature, American Economic Association, vol. 50(2), pages 477-493, June.
    4. Liviana Andreea Niminet, 2014. "Regulation And Enforcement Of Competition Policy," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 20.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Behavioral economics; competition policy; consumers;
    All these keywords.

    JEL classification:

    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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