Economic behavior: to the question of explication of the concept

Keywords: economic person, rationality, utility, maximization, costs, economic motivation, production, distribution, exchange, consumption

Abstract

Economic behavior of a person remains one of the main economic sociology categories. The specific nature of economic behavior shows the opportunities variety for each member of society, reflects the degree and peculiarities of their participation in economic processes, determines the status, inclusion in the economy and other spheres of public life. Economic behavior is analyzed by researchers from different perspectives, for example, from the standpoint of an economical, sociologised and psychologised person. The model of a man serves as a basis of cognition.Scientists associate the explication of socio-economic behavior concept with such features as rationality based on the maximization principle (achieving maximum success, profit, benefits with minimum expenditure of internal and external resources). It is established that the contemporary researchers’ attention in the analysis of economic behavior is directed not so much at the rational choice result as on its process, which deepens the dynamic rationality notion and influence on the choosing processes of the institutional structures within which the choice is made.Three forms of rationality can be distinguished: strong, limited (semi-strong), organic (weak). A strong form correlates with the maximization principle (maximum benefit with a minimum of costs). Limited rationality is associated with the very desire, the intention to act rationally. The rationality pursuit means orientation to the economical use of scarce resources. In terms of the system approach, rationality is a multi-valued property, which is having more than two values, with an ordered scale. Egoistic model of behavior as a pursuit of one’s own interests also falls into the manifestation scheme of the multi-valued property with an ordered scale. Opportunism is rich in informational asymmetry, which negatively affects the economic organization. A peculiar feature of the opportunistic goal-setting is the weak orientation towards the standards of conduct in an effort to acquire benefits as a result of economic actions. The notion of the standard includes the compliance with a certain model containing a mandatory institutional rule of conduct with certain rights and responsibilities of economic actors.The structure of economic behavior has its own specifics. It includes a number of subsystems, for example: emotional (feelings and emotions), volitional (stimuli, motives, aspirations, desires, choices, decisions), cognitive (sensation, perception, memory, imagination, thinking, capabilities, skills, abilities, experience and competency), objective (goals, models and behavioral guidelines), programmatic (strategies and tactics of behavior), institutional (institutional and regulatory codes, rules and restrictions), regulatory (correction, modification and transformation of goals, models and guidelines of behavior), effective (intermediate and productive results), process-oriented (actions and inaction), coordinative and subordinate (subjective and subjective-objective interdependence and relations), informational and institutional (tools and means of goals achievement), environmental (goal achievement conditions).Economic behavior is explicated as a person’s behavior related to the selection of purpose-oriented, pragmatic or socially-oriented economic alternatives to solve economic problems at all stages of the economic cycle - production, distribution, exchange and consumption. The economic motivation of human behavior articulates with the help of semantic resources of the maximization principle, covering the notion of benefits, costs, calculation, the use of resources optimization, profit, utility. All approaches to the study of the economic behavior category are interconnected through the common component - the man as a system core of interactions and interconnections of various spheres of society’s life - economic, social, political, spiritual, which, in turn, are also intertwined and transfer into each other, because human personality is multifaceted, and is determined by the complex nature of individual and social life.

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Published
2018-04-08
How to Cite
Petinova, O. B. (2018). Economic behavior: to the question of explication of the concept. Grani, 21(2), 60-65. https://doi.org/10.15421/171817
Section
Article