Preface

Image by Bret Kavanaugh

Theo Kong

2018/2019

I am delighted to present the reader four essays written by a small team of our researchers at Economic Policy and Research Group (St. Andrews), all of whom share a great interest in the world of Behavioural Economics and its relevance in academia, finance or the environment. The collection of essays presented are each distinct topics in which the author has written of their own volition and passion. Challenging the status quo of traditional economists, behavioural economics poses direct key points in which makes us rethink and reconsider: That individuals make decisions based on ‘unbounded (unlimited) rationality’ accurately processing all the information at their disposal They the use ‘unbounded willpower’ to convert wants into actions and consumption (or production), and have absolute self-control when confronted with choices. In other words, they can resist making ‘poor’ choices They are driven by ‘unbound selfishness’ to achieve maximum benefit for themselves I of course can continue on how such a ‘rebellion’ and the effects of the findings of behavioural economics truly explain the outer world of finance or the real world. But this was the task of a small team within EPRG and laying before you are its fruits. In this report, as issued by EPRG itself, it starts with a brief introduction of how behavioural economics has evolved and shaped. Then we dive into how it shapes trading, its relationship with the environment and effects on share prices respectively. I personally would like to thank each of the authors below, each writing their essays during a stressful time of exams and deadlines.

The Economic Policy & Research Group (EPRG) was founded in 2015 with the aim to promote thought leadership in economics at the University of St Andrews. We are a student-run research group, conducting high-quality research into economic matters affecting the students of the university. 

EPRG was set up to bridge the divide between the theory learnt in lecture halls and its applications in the real world. 

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