Changes in Rational Economic Behavior Model, Caused By the Development of E-Commerce

Abstract

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In the paper the author examines the origins of rationality concept and its transformation within the framework of economic science. According to the author, rationality is a fundamental concept both for philosophy and for economics. Changes in rational economic behavior model significantly effect on informal institutes (in short-term perspective) and on formal institutes (in long-term period). In the paper it is said about significant changes taking place with humanity right now. Today it becomes more and more difficult to describe human behavior by uniform concept of rationality. Now people live in a world that is developing unprecedentedly fast, with the usage of incredible amount of information, countless tasks and social contacts. The development of the Internet and IT tools facilitate this process. Already since the midtwentieth century advertising and marketing has been influencing people’s lifestyle like politics or news. Media resources brands today are comparable to the resources of some political parties or even TV channels what means that advertising today is one of the main factors affecting consumers ' minds and their behavioral model, main feature of which is the premise of rationality or justification of actions. The author analyzes the changes of models of rationality over time and, above all, the changes caused by the development of Internet marketing and its tools for monitoring user activity and the impact on decision making in the Network. In conclusion a number of recommendations is given, which can help consumers to save an independence in making decisions in the Internet environment.

Keywords

• rationality
• decision making theory
• behavioral economics
• economic theory
• history of philosophy
• Internet marketing