We have explored behavioral economics in this course. This short paper will focus on two related concepts: bounded rationality and framing. Bounded rationality is the core underpinning of behavioral economics. Framing is a concept within behavioral economics that has been verified through rigorous empirical analysis. You will explain these concepts and use them to analyze real-world economic behavior in the pandemic environment. The required elements are: 1) Explain bounded rationality. What are the assumptions and elements that comprise this concept? You need to back your explanation through an outside source(s) which must be cited. 2) Explain framing . What are the elements that comprise this concept? You need to back your explanation through an outside source(s) which must be cited. 3) Use the article “Framing: the Case of Masks” as an example of, and evidence of, framing. Discuss how, after authorities have presented the same information, the mask/no-mask choice can be framed. What choice term is used to describe each framing possibility? Use the evidence presented in the article to analyze whether framing matters in this instance. Citation to the article is required. 4) Describe the evidence of the infection-rate consequences of the two framing possibilities. Use the data provided by the two provided articles, one on Kansas and one on states across the country. Citations to the articles are required. 5) Discuss some of the economic consequences resulting from higher infection rates which, therefore, can be ascribed to mask-choice framing. Use media sources. These must be cited. 6) Based on your observations from your analysis, provide an opinion on how states ought to frame the mask/no-mask choice. Good writing structure and proper citation methodology is required.
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