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Bounded Rationality of Individual Action in the Consumption of Public Goods Cover

Bounded Rationality of Individual Action in the Consumption of Public Goods

Open Access
|Dec 2019

Abstract

In order to gain a better understanding of human behaviour, Economics seeks to work with other disciplines such as Psychology, Sociology, or Anthropology (Behavioural Economics). Unlike neoclassical economic theory, behavioural economics does not assume a rational individual. On the contrary, it focuses on an irrational (bounded rational) individual while revealing what really influences his decision and his actions in order to respond more adequately to public needs, increasing the efficiency of public-service provision. The aim of the paper is to investigate the factors of willingness to pay for public services. The willingness of individuals to pay depends on factors such as affection and sympathy, conviction, compassion, regret, respect, warm glow, commitment to society, appreciation, invitation to participation, fundraising method and tax policy. The significance of the research conclusions lies in initiating a new perspective on the possibilities of securing public services.

Language: English
Page range: 157 - 194
Published on: Dec 11, 2019
Published by: NISPAcee
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2019 Beáta Mikušová Meričková, Nikoleta Jakuš Muthová, published by NISPAcee
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.