While examining the assumptions of agent behaviour posited by mainstream economists, we found situations that did not correspond to experience or even common sense. Economic models tend to overstate the independence of agents and their capacity to process vast amounts of information in highly complex ways. The inability for economists to account for irrational behaviour led us to wonder: Can market patterns actually be a function of psychology?
Economic Sciences (as a branch of psychology) represents the culmination of our research into the relationship between price variations in speculative markets (e.g. real estate, art) and emotional cycles. Unfortunately, while preparing it we quickly got confused trying to distinguish between causes and effects, and the more we thought about it, the more we agreed with sceptical realists who characterise causation and inductive reasoning as illusions generated by familiarity.
Economic Sciences (as a branch of pshychology) (2009)