Social Norms (Behavioural Economics)
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Last updated 21 Mar 2021
Traditional economics assumes that people make choices independently of one another. Behavioural economists believe that most decisions are taken in a social context within social networks. Individuals are influenced by social preferences, identities, and norms. Many people imitate the behaviour of others almost automatically.
The World Bank Development Report (2015) said that "Individuals are not calculating automatons. Rather, people are malleable and emotional actors whose decision making is influenced by contextual cues, local social networks and social norms, and shared mental models."