chapter  Chapter 5
21 Pages

Behavioral Economics and Cryptoeconomics

WithJian Gong, Wei Xu

Behavioral economics uses the knowledge of social psychology to study the influence of information activities on the economic activities. It starts from people’s actual behaviors and helps us to understand the various anomalies hidden in daily life correctly. Adam Ereli, an economist at the Massachusetts Institute of Technology, believes the majority of transactions have both positive and negative aspects, but freedom makes us forget the negative ones. The community based on cryptoeconomics, or the decentralized organization, will better handle the relationship between social norms and market norms. The decision-making, the fair and open nature of the blockchain itself allows us to get the information we want to know, rather than the data being controlled by a third-party intermediary.