Give Two Examples of Seemingly Irrational Behavior That Behavioral Economists

question 13

Essay

Give two examples of seemingly irrational behavior that behavioral economists are attempting to explain.

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Definitions:

Seasonal Working Capital

Additional working capital needed to support fluctuations in business activity due to seasonal changes in demand.

Short-Term Loans

Loans that are scheduled to be repaid in less than a year, often used for working capital or emergency financing needs.

Dividend Payments

Distributions of a portion of a company's earnings, decided by the board, to a class of its shareholders.

Trade Credit

A financing arrangement where a buyer is allowed to purchase goods or services and pay the supplier at a later agreed date.