Question

due 22 Sep This is a graded discussion: 20 points possible Module 4 Discussion | 2 16 Please post responses to the discussion thread during Module 4. • What are some of the limitations or challenges of behavioral economics? • How does a company's size influence the kind of health benefits it offers? Search entries or author Unread Subscribe Write a reply..

Answer 1

The demonstration of biases in decision making is one of the key principles of behavioral economics. That is,we as beings deviate from the rational choice that maximizes the usefulness. That we have intrinsic faults that make us averse to loss, that we are influenced by contextual data (framing), and that we act very differently when we believe that others are observing us. Indeed, there is a lengthy and thorough list of so-called cognitive biases. We can see in this manner how psychology empowered economies to better map the phenomena that drive our decisions. It has been a wonderful concept to infuse psychology into economics all the way through.

Currently, behavioral economics has excellent success in both company and academia. Because of the added value this view gives to companies in understanding and influencing client behaviors, corporations live and flourish. Poor explanatory energy Poor temporal resolution Limited impacts of nudging

It's merely not enough to map. It is a bad understanding of the human mind, with all due regard. It doesn't explain why something first occurs. Of course, we have aversion to losses, framing impacts, and anchoring impacts A deeper truth about the human mind can't be escaped here: it's a biological, developed system. No causal mechanism is provided by behavioral science, no explanation as to why. Here we have to switch to biology, neuroscience, neuropsychology.

Methods and models of behavioral science do not provide an indication of this, which in turn leaves us not only to guess how to act, but also when to intervene.

The federal health insurance requirements for your staff depend on the size of your company. If you have less than 50 full-time equivalent staff, there is no legal requirement for your company to give health advantages. (For reasons why you should consider providing them anyway, see the next section.) If you have 50 or more full-time equivalent staff, you must provide health insurance alternatives that fulfill legally specified requirements of affordability and quality. You're going to owe an annual federal tax penalty if you don't.

Managing a benefit program is a challenging job that needs simplified communication between your HR team, your staff and any third-party suppliers. However, it is worth the price and effort to offer quality advantages. It's one of the most important ways to keep your staff happy, healthy and productive. After all, your business is just as great as your staff. Especially if you own a small business, it enables you stand apart from your rivals by providing advantages to your employee love. Businesses of all sizes can deliver great–and affordable–benefits with the correct HR instruments and knowledge at hand that will delight their present and prospective staff.