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RE: Psychology Addict # 18 | Individual Differences : Personality

in #psychology7 years ago

The classification and measurement of personality contributes to the understanding of abnormal behaviour, mental illnesses, and also; on a less gloomy note, it works as a good indicator of how financially secure someone is likely to be<<

I think this is where psychology and economics overlap. The big book on econ is Mises' "Human Action" and it looks at how every economic exchange is precipitated by a decision to act. But what makes one person act and another not? An economist might tell you incentives, or perceived incentives... some would tell you it's a simple lack of information. But these aspects of personality seem crucial, as well, especially in determining how a person will perceive his environment and incentives it contains.

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This is a superb comment @geke. I love all the info you add to the topics discussed on my posts. Thank you so much! Yes, Stiglitiz would say that lack of information is a factor that plays a major role in decision making when it comes to the world of finances. While Milgram states that who the individual is has little to do with how he is going to react to the situation he /she finds himself/herself in!
It is a fascinating debate.
All the best!