Habitual Economics - Integrating the psychological research on habit formation into behavioral economics

18 Pages Posted: 30 Nov 2023

See all articles by Max Höfer

Max Höfer

Nova School of Business and Economics

Jens Kai Perret

International School of Management

Nicole Joisten

ISM International School of Management

Date Written: November 18, 2023

Abstract

The purpose of this study is the integration of previously overlooked psychological habit research into behavioral economics. It is discussed if habits can be considered a stand-alone effect within behavioral economics and how they might deepen the understanding of known effects. In this context three domains where identified, in which habits lead to irrational behavior. Aside from the scientific perspective, practical applications for governments and companies where identified. Governments can use habit-based nudging to facilitate the formation of desirable habits in the population. Integrating habit research into behavioral economics holds significant potential for research and practice.

Keywords: behavioral economics; habit; nudge; heuristic; theoretical

Suggested Citation

Höfer, Max and Perret, Jens Kai and Joisten, Nicole, Habitual Economics - Integrating the psychological research on habit formation into behavioral economics (November 18, 2023). Available at SSRN: https://ssrn.com/abstract=4636981 or http://dx.doi.org/10.2139/ssrn.4636981

Max Höfer

Nova School of Business and Economics ( email )

Campus de Carcavelos
Rua da Holanda, 1
Carcavelos, 2775-405
Portugal

Jens Kai Perret (Contact Author)

International School of Management ( email )

Otto-Hahn-Str. 19
Dortmund, 44227
Germany

Nicole Joisten

ISM International School of Management ( email )

17, boulevard Raspail
Paris, 75007
France

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