Examining the Impact of Cognitive Processes on Economic Decisions: Simulating the Behavior of Economic Agents under Risk and Uncertainty
Keywords:
cognitive processes, economic decisions, simulation, risk, uncertainty, cognitive biases, loss aversion, overconfidenceAbstract
This study investigates the influence of cognitive processes on economic decisions and simulates the behavior of economic agents under conditions of risk and uncertainty. Simulation models based on stochastic algorithms were employed to analyze economic decision-making in environments characterized by risk and uncertainty. The simulations were implemented using the Python and R programming languages, and economic behaviors influenced by cognitive factors such as memory constraints, attention, and behavioral biases were examined. The results indicated that when faced with risk, economic agents tend to gravitate toward satisficing options and adopt simpler strategies, even if these decisions are not fully optimal. This research also revealed discrepancies between simulated behaviors and the predictions of rational choice theories, highlighting the impact of cognitive biases such as loss aversion and overconfidence in economic decision-making. The use of diverse simulation techniques and data analysis contributed to a better understanding of decision-making in complex contexts and can inform the improvement of economic and financial policies.
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