Economic psychology – What is it, definition and concept | 2022

Economic psychology is a branch of psychology made up of theories and techniques that economists routinely put into practice. It focuses mainly on assessing the psychological aspects that can influence economic decision making.

Economic psychology is one of the most prominent branches that make up psychology. It is basically focused on knowing, researching and applying a series of techniques that serve to find out the types of psychological or social factors that determine economic decisions. These decisions can be carried out by individuals, companies or institutions.

Psychology is a discipline focused on trying to study, solve and solve the mental processes of individuals, as well as the behavior they have. In the case of economic psychology, it is focused on the economic aspect and the way people or institutions behave around it.

What characteristics does economic psychology have?

Economic psychology has a series of objectives and goals when it comes to implementation:

  • It focuses on investigating and providing data on people’s behavior in relation to economic aspects and decision-making.
  • It tries to configure models of how individuals perceive the world of the economy and how it can have an impact at a social level.
  • It generates proposals to delve into the aspect of economic literacy and socialization.
  • It distinguishes a series of actions and categories related to the world of the economy. For example, behaviors that occur when approaching the domestic economy, how to invest in the market and making decisions about it, experiences related to the labor market (salaries, offers and unemployment), among others.
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It should be noted that, when talking about economic psychology, reference is not only made to an individual or group, but that this discipline also deals with research within the social, business and institutional spheres.

example of economic psychology

One of the aspects that economic psychology studies is everything that happens in the Government and in related institutions within economic policy. Related to this, it also investigates how economic growth and prosperity are manifested in the behavior of people.

Another field of interest in this discipline is the fact of investigating and assessing how the family economy is managed. For example, savings accounts, how individuals act when organizing themselves (financially), credit management, among others.

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