Research Article
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Year 2021, Volume: 3 Issue: 2, 111 - 118, 31.12.2021

Abstract

References

  • Akar O. (2020). Contextualizing COVID-19 related misinformation and disinformation: An intersectional approach to the infodemic, Unpublished Master’s Thesis, https://tez.yok.gov.tr/UlusalTezMerkezi/tezSorguSonuc Yeni.jsp retrieved from 02.12.2020.
  • Aktan C.S. (2018). Yeni İktisat Okulları ve İktisadi Düşünce, Ankara: Seçkin Yayınları, 3. Basım.
  • Angrisani, M. Cipriani, M. Guarino, A. Kendall, R., and de Zarate Pina, J.O. (2020). Risk Preferences at the Time of COVID-19: An Experiment with Professional Traders and Students, https://www.newyorkfed.org/ medialibrary/media/research/staff_reports/sr927.pdf retrieved from 03.12.2020.
  • Baddeley M. (2019). Behavioral Economics and Finance, New York: Routledge.
  • Baddeley M. (2020). Hoarding in the age of COVID-19, Journal of Behavioral Economics for Policy, 4(COVID-19 Special Issue): 69-75.
  • Bavel J.J.V., Baicker, K., Boggio, P.S. et al. (2020). Using social and behavioural science to support COVID-19 pandemic response. Nat Hum Behav 4, 460–471 https://doi.org/10.1038/s41562-020-0884-z.
  • Betsch C. (2020). How behavioural science data helps mitigate the COVID-19 crisis. Nat Hum Behav, 4, 438. https://doi.org/10.1038/s41562-020-0866-1
  • Bowen G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2): 27-40. doi:10.3316/QRJ0902027.
  • Campbell M., Egan M., Lorenc T. et al. Considering methodological options for reviews of theory: illustrated by a review of theories linking income and health. Syst Rev 3, 114 (2014). https://doi.org/10.1186/2046-4053-3-114
  • Can Y. (2012). İktisatta Psikolojik İnsan Faktörü: Davranışsal İktisat. Hukuk ve İktisat Araştırmaları Dergisi, 4(2): 91–98.
  • Carter H. Weston, D. and Amlôt, R. (2020). Managing crowds in crises, together apart psychology of COVID-19, USA: Sage.
  • Cruwys, T. (2020). Risk Perception, Together Apart Psychology of COVID-19, USA: Sage.
  • Eser R., and Toigonbaeva D. (2011). Psikoloji ve iktisadin birleşimi olarak davranişsal iktisat. Eskişehir Osmangazi Üniversitesi İİBF Dergisi. 6: 287- 321.
  • Finucane M.L., Alhakami A., Slovic P. and Johnson SM. (2000). The affect heuristic in judgments of risks and benefits. J Behav Dec Mak. 13: 1–17. doi: 10.1002/(SICI)1099-0771
  • Gans J. (2020). Economics in the Age Of COVID-19, USA: MIT Press First Reads.
  • Gaurav, S. (2019) Policies need a cautious nudge. Economic & Political Weekly, 52(39): 13-16.
  • Gaurav S. (2020). Behavioural Economics in the Fight Against COVID-19: BOMA Framework, retrieved from 03.12.2020
  • Geren A. (2020). Evaluate the severi̇ty of anxi̇ety and depressi̇on i̇n pregnant women duri̇ng the COVID-19 pandemi̇c, Unpublished Dissertation Expertise in Medicine, https://tez.yok.gov.tr/UlusalTezMerkezi/tezSorguSonucYeni.jsp retrieved from 02.12.2020
  • Greenaway K.H. (2020). Group Threat, Together Apart Psychology of COVID-19, USA: Sage.
  • Greenaway K. H., Wright R. G., Willingham J., Reynolds K. J. and Haslam S. A. (2015). Shared identity is key to effective communication. Personality and Social Psychology Bulletin, 41, 171–82.
  • Halpern S.D., Truog R.D. and Miller FG. (2020). Cognitive Bias and Public Health Policy During the COVID-19 Pandemic. JAMA.;324(4):337–338. doi:10.1001/jama.2020.11623
  • Hameleers M. (2020). Prospect theory in times of a pandemic: The effects of gain versus loss framing on policy preferences and emotional responses during the 2020 COVID-19 virus outbreak. SocArXiv. Retrieved from https://osf.io/preprints/socarxiv/7pykj/
  • Harper C., Satchell L., Fido D. and Latzman R. (2020). Functional fear predicts public health compliance in the COVID-19 Pandemic. Int J Mental Health Addict. doi: 10.1007/s11469-020-00281-5.
  • Haslam S. A., and Reicher S. D. (2006). Stressing the group: Social identity and the unfolding dynamics of responses to stress. Journal of Applied Psychology, 91, 1037–1052.
  • Kapelıushnıkov R. (2015). Behavioral Economics and the ‘New’ Paternalism. Russian Journal of Economics, 1(1), 81-107.
  • Levinson J. and Peng K. (2006). Valuing Cultural Differences in Behavioral Economics. ICFAI J. Behav. Finance. 4.
  • Liu J.J., Bao Y., Huang X., Shi J. and Lu L. (2020). Mental health considerations for children quarantined because of COVID-19. Lancet Child Adolesc Health, 4:347-349
  • Mede, B., Fleischhut N. and Osman M. (2018), ‘Beyond the confines of choice architecture: A critical analysis’, Journal of Economic Psychology, 68, pp. 36-44.
  • Mols F. (2020). Behavior Change, Together Apart Psychology of COVID-19, USA: Sage.
  • Mosley M. (2020). COVID-19 What you need to know about the COVID-19 virus and the race for the vaccine, Australia: Simon & Schuster
  • Muldoon, O. (2020). Collective Trauma, Together Apart Psychology of COVID-19, USA: Sage.
  • Ntontis E., Drury J., Amlôt R., Rubin G. J. and Williams R. (2020). Endurance or decline of emergent groups following a flood disaster: Implications for community resilience. International Journal of Disaster Risk Reduction. doi: 10.1016/j.ijdrr.2020.101493
  • Ruben E. and Dumludag E. (2015). İktisat ve Psikoloji. (D. Dumludağ, Ö. Gökdemir, L. Neyse, & E. Ruben, Dü) Ankara: İmge Kitabevi.
  • Sanders M., Stockdale E., Hume S., and John P. (2020). Loss aversion fails to replicate in the COVID-19 virus pandemic: Evidence from an online experiment. Economics letters, 109433. Advance online publication. https://doi.org/10.1016/j.econlet.2020.109433
  • Schwab K. and Malleret, T. (2020). COVID-19: The Great Reset,Geneva: World Economic Forum.
  • COVID-19 virus health concerns. New York Times (March 30). www.nytimes.com/2020/03/30/ business/economy/COVID-19 virus-instacart-amazon.html
  • Soofi M. Najafi F. and Karami-Matin B. (2020). Using Insights from Behavioral Economics to
  • Kinder W. (2020). The New ACE_: At-home COVID-19 Effects on Youth, After The Pandemic Visions of Life Post COVID-19, USA: Sunbury
  • Kim J. Giroux M. Gonzalez-Jimenez H. Jang S. Kim S. Park J. Kim J. Lee J.C. and Choi Y.K. (2020) Nudging to Reduce the Perceived Threat of COVID-19 virus and Stockpiling Intention, Journal of Advertising, DOI: 10.1080/00913367.2020.1806154
  • Scheiber N. & Conger K. (2020). Strikes at Istacart and Amazon over
  • Li M. and Chapman G. B. (2013). Nudge to health: Harnessing decision research to promote health behaviour. Social and Personality Psychology Compass 7 (3):187–98. doi:10.1111/spc3.12019
  • Manstead A.S.R. (2018). The psychology of social class: How socioeconomic status impacts thought, feelings, and behaviour,British Journal of Social Psychology, https://doi.org/10.1111/bjso.12251
  • Malafarina, T.M. (2020). How Are Future Pandemics Likely to Be Different? After The Pandemic Visions of Life Post COVID-19, USA: Sunbury
  • Mathews B. (2020). COVID-19: Through the Eyes of a Grandmother, After the Pandemic Visions of Life Post COVID-19, USA: Sunbury
  • Mitigate the Spread of COVID-19. Appl Health Econ Health Policy 18, 345–350. https://doi.org/10.1007/s40258-020-00595-4
  • Nabi R. L. (1999). A cognitive‐functional model for the effects of discrete negative emotions on information processing, attitude change, and recall. Communication Theory 9 (3):292–320. doi:10.1111/j.1468-2885. 1999.tb00172.x
  • Osler S. (2019). COVID-19 virus outbreak,
  • Pribram, E Deidre. (2019). “Strategic pleasure: Gendered anger as collective emotion in WANTED.” NECSUS. European Journal of Media Studies 8(1): 171–189
  • Slovic P., Fischhoff B. and Lichtenstein S. (1980). Facts and fears: Understanding perceived risk. In Societal risk assessment: How safe is safe enough? eds. R.Schwing and W.Alberts, 181–214. New York, NY: Plenum.
  • Tongar H. (2020). Optimism and pessimism mother of the pandemic in the process level examination of the relationship between children's anxiety level: 'turkey COVIDien-19 example', Unpublished Master’s Thesis, https://tez.yok.gov.tr/UlusalTezMerkezi/tezSorguSonucYeni.jsp retrieved from 02.12.2020
  • Tversky, A., and Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5, 207–232.
  • Van den Bos K. 2001. Uncertainty management: The influence of uncertainty salience on reactions to perceived procedural fairness. Journal of Personality and Social Psychology 80 (6):931–41. doi:10.1037/0022-3514.80.6.931
  • Vosoughi, S, Roy, D. and Aral, S. (2018). “The spread of true and false news online.” Science 359(6380): 1146–1151.
  • Wang C., Pan R., and Wan X. (2020). Immediate Psychological Responses and Associated Factors during the Initial Stage of the 2019 COVID-19 virus Disease (COVID-19) Epidemic among the General Population in China. Int J Environ Res Public Health, 17(5):1729.11
  • Li J. B., Yang A., Dou K., and Cheung R. Y. M. (2020). Self-control moderates the association between perceived severity of the COVID-19 virus disease 2019 (COVID-19) and mental health problems among the Chinese public. PsyArXiv Preprints. https://doi.org/10.31234/osf.io/2xadq
  • Wise T., Zbozinek T., Michelini G., Hagan C. C., and Mobbs D. (2020). Changes in risk perception and protective behavior during the first week of the COVID-19 pandemic in the United States. PsyArXiv Preprints. https://doi.org/10.31234/osf.io/dz428.
  • Yoon J., Narasimhan R. and Kim M. K. (2018). Retailer’s sourcing strategy under consumer stockpiling in anticipation of supply disruptions. International Journal of Production Research 56 (10):3615–35. doi:10.1080/00207543.2017.1401748
  • Zettler I., Schild C., Lillehot L. and Böhm R. (2020). Individual differences in accepting personal restrictions to fight the COVID-19 pandemic: results from a Danish adult sample. PsyArXiv Preprints. https://doi. org/10.31234/osf.io/pkm2a.
  • Zizek S. (2020). Pandemic, New York: OR Books.

Understanding COVID-19 virus pandemic in terms of behavioral economics in terms of how people think and learn

Year 2021, Volume: 3 Issue: 2, 111 - 118, 31.12.2021

Abstract

The COVID-19 pandemic is an active extreme acute respiratory virus syndrome (SARS‐CoV‐2). It has many effects on many areas ranging from education to culture to economics. However, it can be said that the most important effect is on economics. The outbreak has become the world economy's most destabilizing threat so far. For example, Tourism is among the worst affected industries impacted by travel restrictions, public area closures. Hundreds of millions of jobs could be lost globally. In this context, it is important to examine its economic effects in terms of different perspectives. One way of looking at COVID-19 pandemic can be based on behavioral economics. Although in traditional economics, while the individual is defined as being purely self-interested and at the same time callous, acting for maximum benefit, behavioral economics theory aims to highlight the human factors such as anxiety, fear, risk aversion, motivation, and happiness in the economic decisions. Rather than examining the COVID-19 pandemic based on purely monetary terms, it is important to investigate it in terms of psychological and economical effects to attain a more realistic picture. This study is of great significance for the literature since the application of behavioral economics principles to guiding human behavior is discussed. In this regard, the paper aims to examine the COVID-19 pandemic in the context of behavioral economics. The data analysis is based on a literature review. The sample of the study consists of documents containing the concepts of COVID-19 virus and "behavioral economics". To sum up, we have long known that the cause for change is learning. Hence, if we learn how learning occurs, we can propose some models to increase public awareness regarding the pandemic. In this respect, behavioral economics can give some insights into this issue. According to our results, nudging people towards positive health choices is a successful method of encouraging not only cost-efficient intervention but also healthier behavior. Additionally, biases such as status quo bias, optimism bias, loss aversion, affect heuristic, social contracts can be used to guide to enable people to take more preventive measures. Information is also an important factor for acknowledging the public sick leave is an important issue that will affect the current social contract.

References

  • Akar O. (2020). Contextualizing COVID-19 related misinformation and disinformation: An intersectional approach to the infodemic, Unpublished Master’s Thesis, https://tez.yok.gov.tr/UlusalTezMerkezi/tezSorguSonuc Yeni.jsp retrieved from 02.12.2020.
  • Aktan C.S. (2018). Yeni İktisat Okulları ve İktisadi Düşünce, Ankara: Seçkin Yayınları, 3. Basım.
  • Angrisani, M. Cipriani, M. Guarino, A. Kendall, R., and de Zarate Pina, J.O. (2020). Risk Preferences at the Time of COVID-19: An Experiment with Professional Traders and Students, https://www.newyorkfed.org/ medialibrary/media/research/staff_reports/sr927.pdf retrieved from 03.12.2020.
  • Baddeley M. (2019). Behavioral Economics and Finance, New York: Routledge.
  • Baddeley M. (2020). Hoarding in the age of COVID-19, Journal of Behavioral Economics for Policy, 4(COVID-19 Special Issue): 69-75.
  • Bavel J.J.V., Baicker, K., Boggio, P.S. et al. (2020). Using social and behavioural science to support COVID-19 pandemic response. Nat Hum Behav 4, 460–471 https://doi.org/10.1038/s41562-020-0884-z.
  • Betsch C. (2020). How behavioural science data helps mitigate the COVID-19 crisis. Nat Hum Behav, 4, 438. https://doi.org/10.1038/s41562-020-0866-1
  • Bowen G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2): 27-40. doi:10.3316/QRJ0902027.
  • Campbell M., Egan M., Lorenc T. et al. Considering methodological options for reviews of theory: illustrated by a review of theories linking income and health. Syst Rev 3, 114 (2014). https://doi.org/10.1186/2046-4053-3-114
  • Can Y. (2012). İktisatta Psikolojik İnsan Faktörü: Davranışsal İktisat. Hukuk ve İktisat Araştırmaları Dergisi, 4(2): 91–98.
  • Carter H. Weston, D. and Amlôt, R. (2020). Managing crowds in crises, together apart psychology of COVID-19, USA: Sage.
  • Cruwys, T. (2020). Risk Perception, Together Apart Psychology of COVID-19, USA: Sage.
  • Eser R., and Toigonbaeva D. (2011). Psikoloji ve iktisadin birleşimi olarak davranişsal iktisat. Eskişehir Osmangazi Üniversitesi İİBF Dergisi. 6: 287- 321.
  • Finucane M.L., Alhakami A., Slovic P. and Johnson SM. (2000). The affect heuristic in judgments of risks and benefits. J Behav Dec Mak. 13: 1–17. doi: 10.1002/(SICI)1099-0771
  • Gans J. (2020). Economics in the Age Of COVID-19, USA: MIT Press First Reads.
  • Gaurav, S. (2019) Policies need a cautious nudge. Economic & Political Weekly, 52(39): 13-16.
  • Gaurav S. (2020). Behavioural Economics in the Fight Against COVID-19: BOMA Framework, retrieved from 03.12.2020
  • Geren A. (2020). Evaluate the severi̇ty of anxi̇ety and depressi̇on i̇n pregnant women duri̇ng the COVID-19 pandemi̇c, Unpublished Dissertation Expertise in Medicine, https://tez.yok.gov.tr/UlusalTezMerkezi/tezSorguSonucYeni.jsp retrieved from 02.12.2020
  • Greenaway K.H. (2020). Group Threat, Together Apart Psychology of COVID-19, USA: Sage.
  • Greenaway K. H., Wright R. G., Willingham J., Reynolds K. J. and Haslam S. A. (2015). Shared identity is key to effective communication. Personality and Social Psychology Bulletin, 41, 171–82.
  • Halpern S.D., Truog R.D. and Miller FG. (2020). Cognitive Bias and Public Health Policy During the COVID-19 Pandemic. JAMA.;324(4):337–338. doi:10.1001/jama.2020.11623
  • Hameleers M. (2020). Prospect theory in times of a pandemic: The effects of gain versus loss framing on policy preferences and emotional responses during the 2020 COVID-19 virus outbreak. SocArXiv. Retrieved from https://osf.io/preprints/socarxiv/7pykj/
  • Harper C., Satchell L., Fido D. and Latzman R. (2020). Functional fear predicts public health compliance in the COVID-19 Pandemic. Int J Mental Health Addict. doi: 10.1007/s11469-020-00281-5.
  • Haslam S. A., and Reicher S. D. (2006). Stressing the group: Social identity and the unfolding dynamics of responses to stress. Journal of Applied Psychology, 91, 1037–1052.
  • Kapelıushnıkov R. (2015). Behavioral Economics and the ‘New’ Paternalism. Russian Journal of Economics, 1(1), 81-107.
  • Levinson J. and Peng K. (2006). Valuing Cultural Differences in Behavioral Economics. ICFAI J. Behav. Finance. 4.
  • Liu J.J., Bao Y., Huang X., Shi J. and Lu L. (2020). Mental health considerations for children quarantined because of COVID-19. Lancet Child Adolesc Health, 4:347-349
  • Mede, B., Fleischhut N. and Osman M. (2018), ‘Beyond the confines of choice architecture: A critical analysis’, Journal of Economic Psychology, 68, pp. 36-44.
  • Mols F. (2020). Behavior Change, Together Apart Psychology of COVID-19, USA: Sage.
  • Mosley M. (2020). COVID-19 What you need to know about the COVID-19 virus and the race for the vaccine, Australia: Simon & Schuster
  • Muldoon, O. (2020). Collective Trauma, Together Apart Psychology of COVID-19, USA: Sage.
  • Ntontis E., Drury J., Amlôt R., Rubin G. J. and Williams R. (2020). Endurance or decline of emergent groups following a flood disaster: Implications for community resilience. International Journal of Disaster Risk Reduction. doi: 10.1016/j.ijdrr.2020.101493
  • Ruben E. and Dumludag E. (2015). İktisat ve Psikoloji. (D. Dumludağ, Ö. Gökdemir, L. Neyse, & E. Ruben, Dü) Ankara: İmge Kitabevi.
  • Sanders M., Stockdale E., Hume S., and John P. (2020). Loss aversion fails to replicate in the COVID-19 virus pandemic: Evidence from an online experiment. Economics letters, 109433. Advance online publication. https://doi.org/10.1016/j.econlet.2020.109433
  • Schwab K. and Malleret, T. (2020). COVID-19: The Great Reset,Geneva: World Economic Forum.
  • COVID-19 virus health concerns. New York Times (March 30). www.nytimes.com/2020/03/30/ business/economy/COVID-19 virus-instacart-amazon.html
  • Soofi M. Najafi F. and Karami-Matin B. (2020). Using Insights from Behavioral Economics to
  • Kinder W. (2020). The New ACE_: At-home COVID-19 Effects on Youth, After The Pandemic Visions of Life Post COVID-19, USA: Sunbury
  • Kim J. Giroux M. Gonzalez-Jimenez H. Jang S. Kim S. Park J. Kim J. Lee J.C. and Choi Y.K. (2020) Nudging to Reduce the Perceived Threat of COVID-19 virus and Stockpiling Intention, Journal of Advertising, DOI: 10.1080/00913367.2020.1806154
  • Scheiber N. & Conger K. (2020). Strikes at Istacart and Amazon over
  • Li M. and Chapman G. B. (2013). Nudge to health: Harnessing decision research to promote health behaviour. Social and Personality Psychology Compass 7 (3):187–98. doi:10.1111/spc3.12019
  • Manstead A.S.R. (2018). The psychology of social class: How socioeconomic status impacts thought, feelings, and behaviour,British Journal of Social Psychology, https://doi.org/10.1111/bjso.12251
  • Malafarina, T.M. (2020). How Are Future Pandemics Likely to Be Different? After The Pandemic Visions of Life Post COVID-19, USA: Sunbury
  • Mathews B. (2020). COVID-19: Through the Eyes of a Grandmother, After the Pandemic Visions of Life Post COVID-19, USA: Sunbury
  • Mitigate the Spread of COVID-19. Appl Health Econ Health Policy 18, 345–350. https://doi.org/10.1007/s40258-020-00595-4
  • Nabi R. L. (1999). A cognitive‐functional model for the effects of discrete negative emotions on information processing, attitude change, and recall. Communication Theory 9 (3):292–320. doi:10.1111/j.1468-2885. 1999.tb00172.x
  • Osler S. (2019). COVID-19 virus outbreak,
  • Pribram, E Deidre. (2019). “Strategic pleasure: Gendered anger as collective emotion in WANTED.” NECSUS. European Journal of Media Studies 8(1): 171–189
  • Slovic P., Fischhoff B. and Lichtenstein S. (1980). Facts and fears: Understanding perceived risk. In Societal risk assessment: How safe is safe enough? eds. R.Schwing and W.Alberts, 181–214. New York, NY: Plenum.
  • Tongar H. (2020). Optimism and pessimism mother of the pandemic in the process level examination of the relationship between children's anxiety level: 'turkey COVIDien-19 example', Unpublished Master’s Thesis, https://tez.yok.gov.tr/UlusalTezMerkezi/tezSorguSonucYeni.jsp retrieved from 02.12.2020
  • Tversky, A., and Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5, 207–232.
  • Van den Bos K. 2001. Uncertainty management: The influence of uncertainty salience on reactions to perceived procedural fairness. Journal of Personality and Social Psychology 80 (6):931–41. doi:10.1037/0022-3514.80.6.931
  • Vosoughi, S, Roy, D. and Aral, S. (2018). “The spread of true and false news online.” Science 359(6380): 1146–1151.
  • Wang C., Pan R., and Wan X. (2020). Immediate Psychological Responses and Associated Factors during the Initial Stage of the 2019 COVID-19 virus Disease (COVID-19) Epidemic among the General Population in China. Int J Environ Res Public Health, 17(5):1729.11
  • Li J. B., Yang A., Dou K., and Cheung R. Y. M. (2020). Self-control moderates the association between perceived severity of the COVID-19 virus disease 2019 (COVID-19) and mental health problems among the Chinese public. PsyArXiv Preprints. https://doi.org/10.31234/osf.io/2xadq
  • Wise T., Zbozinek T., Michelini G., Hagan C. C., and Mobbs D. (2020). Changes in risk perception and protective behavior during the first week of the COVID-19 pandemic in the United States. PsyArXiv Preprints. https://doi.org/10.31234/osf.io/dz428.
  • Yoon J., Narasimhan R. and Kim M. K. (2018). Retailer’s sourcing strategy under consumer stockpiling in anticipation of supply disruptions. International Journal of Production Research 56 (10):3615–35. doi:10.1080/00207543.2017.1401748
  • Zettler I., Schild C., Lillehot L. and Böhm R. (2020). Individual differences in accepting personal restrictions to fight the COVID-19 pandemic: results from a Danish adult sample. PsyArXiv Preprints. https://doi. org/10.31234/osf.io/pkm2a.
  • Zizek S. (2020). Pandemic, New York: OR Books.
There are 59 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Research Articles
Authors

Serkan Künü 0000-0002-8641-5850

Seçil Duran 0000-0003-2996-3786

Publication Date December 31, 2021
Submission Date December 28, 2020
Published in Issue Year 2021 Volume: 3 Issue: 2

Cite

APA Künü, S., & Duran, S. (2021). Understanding COVID-19 virus pandemic in terms of behavioral economics in terms of how people think and learn. Journal of Ekonomi, 3(2), 111-118.

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