BEHAVIORAL ECONOMICS IN THE CONDITIONS OF WAR: THE INFLUENCE OF EMOTIONS ON THE ECONOMIC DECISIONS OF CITIZENS
Abstract
The article is devoted to analize of impact of emotions, caused by the war in Ukraine, on different aspects of daily life and economic decisions, first of all on citizens behavior in the context of increasing of risks and deteriorating security, unpredictability of macroeconomic and social and economic development indicators. It was defined that changes in economic actors behavior (individuals and legal entities) in the context of economic transformations are inevitable, but their source can be not only reasonable motives and objective economic factors. Due to human nature emotions can have priority in the selection processes and often enough under war conditions are a protective reaction to deferent factors. And was defined that emotions, like as majority manifestations of aspirations and fears of citizens, have direct impact on economic decisions, can change not only behavior, but also goals, orienteers, interests of human. In view of this interdependence, its study is importance under actual conditions of war. Comparison (for determined main changes in behavior and economic decisions of citizens during war, changes in interests caused by actual transformations), methods of abstraction, analysis and generalization (for finding of concludes about role of emotions in the process of economic decision making in the context of instability and concludes about impact of war on human behavior) are the research methods which were used in the article. In this science paper the features of processes of economic decisions making by economic agents, main transformations under war conditions, the role of emotional and cognitive factors, including hopelessness, pessimism and depression, confusion, anxiety, fears, hope and sociocultural influences, that develop under “crowd effect”, were determined. Dependence between economic decisions of citizens and their behavior, which under war conditions is formed, based on emotions and emotional reactions, were analyzed. Attention was also focused on importance of emotions control and formed economic decisions based on objective economic factors and motives.
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