1. bookVolume 12 (2019): Issue 2 (December 2019)
Journal Details
License
Format
Journal
eISSN
1338-4309
ISSN
1337-9038
First Published
03 Aug 2009
Publication timeframe
2 times per year
Languages
English
access type Open Access

Bounded Rationality of Individual Action in the Consumption of Public Goods

Published Online: 11 Dec 2019
Volume & Issue: Volume 12 (2019) - Issue 2 (December 2019)
Page range: 157 - 194
Journal Details
License
Format
Journal
eISSN
1338-4309
ISSN
1337-9038
First Published
03 Aug 2009
Publication timeframe
2 times per year
Languages
English
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.

Keywords

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