It was after reading Daniel Kahneman's book

It was after reading Daniel Kahneman's book when I first came to know behavioral economics. And I thought Max economics and marketist economics were both wrong as one of the social movements I had forgotten in my school days.

And I thought that the true economics is behavioral economics. But it was simply intellectual curiosity and studying behavioral economics was to use it for company work. It helped me a lot in marketing, customer management, and even in developing employee or company strategies.

Not long after, Friedman and Samuelson..i.e., looking at the Keynesian school and the idea of neoliberalism, I criticized neoliberalism.

However, from a behavioral economics standpoint, both are wrong.

Dan Aarelli says that existing economics is based on rational judgment, but this is wrong from the root of economics, that is, the assumption. Humans do not make decisions and choose based on market principles based on rational judgment and through consideration of opportunity cost.

However, he said that humans make irrational decisions, but there is a certain pattern, or direction, in this decision. predictably irrational (which translates to economics beyond common sense, but I would say that it is a predictable irrational decision.)

He said, "Humans are irrational, but they are predictable. By presenting this, I can help you judge everything from economics to prices of goods and services, taxation and health policies.

Inflation, monetary policy, unemployment, welfare, etc. are all applicable. Therefore, all policies must be implemented on the premise that humans make decisions irrationally, but they are predictable, and not by playing numbers. Not all of these are based on market logic or on the premise of the working class and capitalist.

So no matter how theoretically or numerically correct policies are, they should not be based on this.

Market logic is already wrong. The supply and demand curves do not move humans. Humans do not make decisions so rationally.

Dan Annie Alley questioned the effectiveness of buying a car, whether people buy it considering the opportunity cost. That's really the case. Taking all the opportunity costs into account, taking a taxi every day and renting a car if you need it is much more beneficial... but it doesn't do that. When buying a car, you don't thoroughly consider the opportunity cost.

So is golf. In the family where the husband plays golf and the wife does not, Manul is dissatisfied with golf. Once you go out, you spend 200,000 won to 300,000 won, go out early in the morning to come in late, go play golf, go out to drink, etc. The cost of golf is very high considering the opportunity cost. However, most people don't decide by considering the cost of golf compared to other opportunity costs. This is too often the case. What is it about jewelry and what is a luxury bag..

If the state does not use the money for national defense, it will make many people happier. The cost of national defense should also be taken into account as an opportunity cost. However, as you can see from the situation in Urlain, there may be local wars today... Considering that, defense spending should be greatly increased.  

The national budget also does not set a zero-base budget in consideration of opportunity costs. Companies sometimes do, but this is actually just to ignore past budget trends.

In that sense, I think it is desirable for a person who has studied behavioral economics to implement the government's policies or lead economic theory.

I hope there will be many behavioral economists in Korea.

ps: There's an interesting thing Dan Early said.
      If you knew Einstein's behavioral economics, you wouldn't be e=mc^2
      100 won > 200 won 50% off... I'm sure they made this formula..
      T-shirts are 100 won at the department store. But at the store next door
      T-shirts are said to be 50% off with a 200 won tag on them.
      Most of us buy clothes with a tag of 200 won at the store next door.
      In fact, the current realistic price is all the same at 100 won.
      But we buy clothes from the store next door.