Economic decision-making from psychological and historical perspectives

Abstract

This paper explores the irrationality of economic decision-making from psychological and historical perspectives. It shows that the homo economicus model often fails to reflect real human behavior, which is shaped by cognitive biases and emotions. Historical examples – including hyperinflation, patterns of property rights, and social norms – illustrate how economic institutions and decisions evolve under the influence of cultural patterns and collective experience. The study aims to strengthen the psychological foundation of economic thought and highlight the significance of cultural and historical contexts.