Concepts & Behavior
By: Brent Stackhouse, MBA
Consultancy Firm Manager
AB, International Relations, William & Mary
MBA, Management, Troy University
The Stackhouse Agency, LLC
www.StackhouseAgency.com
August 24, 2015
Behavior is influenced by our concepts. Particular ingrained concepts may not produce the best return on “sweat equity” or routine modes of behavior in attempts to achieve certain results. Such sub-optimal concepts…“can be reduced if we introduce new words, and new units of measurement, to help shift patterns of thinking.”[1] Financial concepts, the way one views currency, and the means of viewing a notion of value are profoundly important in the way in which one behaves.
Segments of the actions, choices, and motivations of a certain demographic are analyzed in behavioral economics. We are able, with some understanding, to learn more about ourselves and our society when utilizing behavioral economics. With such knowledge, even when we make certain choices that are not necessarily in line with our ultimate objective, we have a level of understanding – and can consider objectives in future situations.
Wealth is often a result of behavior. Given constants, there are instances of increased wealth and decreased wealth for some individuals due to behavior. The behavior is a component of what regularly takes place and the subsequent results viewed on a continuum. Value is a major concept in economics. Currency is a major concept in economics. Investment, compound interest, trade, risk, and utilization are concepts that impact behavior. With such concepts, a time horizon provides a framework for certain behavior of an individual at the present moment and in the future.
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[1] Robert J. Shiller, Finance and the Good Society (Princeton, New Jersey: Princeton University Press, 2012), 149.
