Behavioral Economics Essay Example | Topics and Well Written Essays - 2750 words

Behavioral Economics - Essay Example Hedonic treadmill is a variant of the term hedonic adaptation, which compares an individual's "pursuit of happiness to a person on a treadmill, who has to keep working just to stay in the same place" (Wikipedia). Social etiquette or stipulations or expectations can be a factor that molds the ability to adapt in individuals, and hence, in the community as a whole. The human beings obey or conform to certain unwritten axioms of the society which are considered to be the acceptable norms of the community. This leads to his or her voluntary suppression of certain needs or aspirations as a matter of course. This can also be caused by biases or prejudices that prevail in the society, for example, those that are based on genders, age groups, social status, hierarchies, income levels, etc. Religious principles, beliefs or way of life can also lead to an individual's conforming to certain expectations and thereby compromising on his wants, achievements and aspirations as well as his choices. If a human being can actually be happy with his misfortunes based on his religious beliefs, for example, of his or her miseries being God-given or his or her state being the will of God, etc., then his mental status would actually be happy. This means that even the unemployed, the beggar and the exploited can feel happy and satisfied with their lot. However, this may facilitate the study of human well-being and development unfavorably. In adjusting to a worse life situation, an individual's adaptation is downwardly directed. That is, he or she adjusts to being happy being in a circumstance worse than he or she used to be in. This kind of adaptation is harmful or damaging in that it influences the individual to avert from making rational or reasonable choices. This, naturally, affects development and its applications aversely. This is a conclusion more from an economic or a materialistic point of view, but when you take into consideration an extremely economically backward and thoroughly deprived community, "it is only prudent to wonder how much suffering and misery there would be in the absence of adaptation" (Clark 8). Another form of adaptation is that which is a result of inadequate know-how or awareness. When an individual is not equipped with adequate knowledge, his or her choices, naturally, will not be rational, reasonable or optimum for him or her. In such cases the utility concepts cannot be ideal for conducting development studies and practices. The parameters may change for situations where the individual is able to gather knowledge and where he or she is not. However, with modern-day advancements in the technology of communication, the disparity in the capability levels of acquiring information is going to be less and less. An individual who is in an extremely lowly situation, with most of the essentials of life not being fulfilled to any decent degree whatsoever, if he has adapted to his situation without complaints, as it usually happens in most of the low-economic groups, and he is resigned to be happy with the little pleasures that is available to him, he may not appear to be highly deprived in terms of utility. In such cases, the concepts of utility may not be the reliable or adequate bases for studying human well-being. From all of the factors

Chrysler&Fiat Essay Example | Topics and Well Written Essays - 1250 words

Chrysler&Fiat - Essay Example â€Å"The marriage was based on ego the egos of the two men at the top of the companies at the time who got rich on the deal not compatibility† (Krebs, 2013). Cultural differences made things even worse. This fact limited communication between Daimler and Chrysler. However, when two car companies merge they should have strong relationship and similar cultures. Both sides should understand each country’s traditions before they implement new concepts to their new styles of their cars. A year later, Chrysler decided to move on with Fiat Italian automakers. This time the company should build a solid rock foundation before they further unite. In my perspective if they don’t want to repeat the same costly failures, Chrysler should reflect about there past mistakes that negatively impact their business. They should engage in deep understanding and embrace equalities. Therefore, in order accomplish their goals the company should start to apply business strategies in effe ctive ways to promote a better level. It is important not to forget the cultural differences that created concerns. After the analysis above about the issues at Chrysler, I came out with effective business strategies that may resolve Chrysler’s problems. ... re to improve Chrysler & Fiat relationships through better communication, apply the Hofstede’s theory in business, and follow the current regulation. In my opinion before companies go public they need to have strong structures to support their plans. In business communication is one of the most important things. The initial steps that the CEO of Chrysler should take are to understand Fiat’s background. The firms need to promote open-minded for each other. Furthermore, these two companies should share their visions and missions so they will implement a new hierarchy system that is going to satisfy both companies’ needs. â€Å"This companies merges can harm communications within the companies, especially if the companies adopt distance working and mobile sales and service teams† (MacKechnie, 2013). Chrysler & Fiat need effort and time to fulfill this goal. Both sides should embrace flexibility and equalities because I believe that these will solve the mergin g issues that would cause conflicts at the initial stage. After they overcome the internal structure goals they could minimize bigger conflicts in the future. This first step is the simplest business strategy, but it is the most important aspect of business. It is better for them to consider this step rather than decide to quickly go out to find the profit as soon as possible. It is going to raise unexpected circumstances that would negatively impact the alliance between Chrysler & Fiat. Thus, in order to achieve short term and long term benefit this step is the one that needs serious consideration. I believe that they will have better understanding in the future when they need to overcome the company’s problems. In addition, by understanding both sides’ views, they will focus to pursue one objective that