What is it about?
This paper combines the work of Pierre Bourdieu, a prominent sociologist, with the key ideas of behavioral economics to provide a new way of understanding economic decision-making. Behavioral economics often focuses on how people deviate from the “rational actor” model, using psychological concepts like biases and heuristics to explain why. This study argues that these deviations are not just psychological—they are also shaped by social and cultural factors. Bourdieu’s concept of the habitus—a system of socialized behaviors and perceptions—offers a framework to explain why people act in ways that might seem irrational. For example, someone’s social position or upbringing might shape their tolerance for risk, their preferences for saving versus spending, or their ability to navigate financial decisions. The paper explores three key ideas in behavioral economics—bounded rationality, loss aversion, and time inconsistency—through the lens of sociology, showing how social forces interact with cognitive tendencies. By bridging these two fields, the paper provides a richer explanation of economic behavior, emphasizing the importance of cultural and social structures in shaping what seems rational or irrational.
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Why is it important?
This paper is unique because it bridges the gap between two fields—sociology and behavioral economics—that often operate separately. While behavioral economics focuses on individual decision-making, this research highlights the role of social environments in shaping those decisions. It challenges the idea that irrational behavior is purely the result of cognitive limitations, showing how social structures and cultural norms also play a significant role. It’s timely because both fields are grappling with questions about inequality, financial decision-making, and how social contexts shape economic outcomes. This paper’s insights could help create more effective policies, tools, and education programs by accounting for both psychological and sociological influences on behavior.
Perspectives
Behavioral economics has given us powerful tools to understand why people don’t always act rationally, but it often feels incomplete, as if it’s looking at individuals in isolation. By adding Bourdieu’s sociological insights, this paper fills in the gaps, showing how our social environments profoundly shape what we think is reasonable or possible. I was particularly struck by the idea that someone’s “irrational” financial choices—like avoiding risk or prioritizing immediate rewards—might actually make perfect sense given their social context. It challenges the notion that there’s a single right way to make decisions, highlighting instead how varied and deeply contextual economic behavior really is. For me, this research is a powerful reminder that our decisions are never made in a vacuum. It’s not just about better understanding why people make the choices they do; it’s also about recognizing the social systems that shape those choices and thinking critically about how we can create environments that empower people to thrive.
Dr. Adam Hayes
University of Lucerne
Read the Original
This page is a summary of: The Behavioral Economics of Pierre Bourdieu, Sociological Theory, March 2020, SAGE Publications,
DOI: 10.1177/0735275120902170.
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