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  • 13Aug

    Every once in a while I encounter some amazing new discovery that shocks the media for a day or two, and then it disappears like a dust in the wind, without leaving a trace for future notice. I just can’t stop wondering what had happened. Is the research gone bad just after the publicity? Was it all bullshit, just a trick for the media to enter some new excitements into our burring life?

    Is this what the future holds for us?

    Is this what the future holds for us?

    Does the promising product got to the final stages but the company got bankrupt? Or, and that’s crazy thought, we just can’t see our world differently? Are we too frightened that some great invention will change us drastically, and the only way we can conduct to changes is slow but safe?. In most cases you can blame the marketing. It’s true, though, that it all comes down to the way we provide the world a product that it can understand it’s true quality and adjust to all it requires.

    Of course Business is a tough game, and if ones invent something that might hurt other, the later will do everything to stop it. But, and there is a great but, imagine that one day we will all wake up to a world without oil, having flying cars or even posses an unlimited lands on another earth-like planet.  Think about the many times in our history, humanity made the impossible come true! Electricity, flight and even fire are some of the discoveries and inventions that changed the way we see the world.

    Have you ever thought about the economic aspect of those earthquake inventions?  Let’s hypothetically describe what could have happen if some company will find some useful cheap way to create cold fusion energy based batteries. Think about the possibilities like buying a mobile phone with battery charged for 25 years or car needed to be refueled once a year.  Think what will happen to our high dependency on fuel and the geographic natural resource which divides the world into rich areas and all the others.  Think what will happen to all the green economy that has risen when most of the industry harms the natural environment.   Think of all the unemployment that will be created when the energy problems will vanish.  Think of the rise of new tycoons which will dominate the world for the next century.

    In the bottom line – it will change our life, and we develop new reliance. New era!

    The CEO game provide you with this article so you start thinking big.

    We believe that with a lot business simulations (based on the concept of business serious games), along with hours of fun, you will learn everything you need in order to reach the next brilliant idea.  We invite you to register for the CEO Game beta today (The registration for is in the upper right corner), and soon start playing, learning and acquiring all the knowledge and experience you need in the future using our serious game.

    Before we say goodbye remember that true entrepreneurs should always believe in their ideas, take chances and conquer the things that almost everyone considers as impossible. Maybe you have the idea that one day will change the way we all see the world…

    Nimrod.

    The CEO Game.

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  • 09Aug

    What is Behavioral Economics?

    Logically wrong.

    Logically wrong.

    Behavioral economics is an academic field combining the departments of economics and psychology, providing useful implementation of studies done in behavioral science, in order to understand better the subject of decision-making at the economic field, and how it affects the economy: prices, investments yield, resource allocation etc.

    The discipline deals mainly in rationalism or irrationality of market agents and public trends for decisions making.
    Models of behavioral economics combine insights from the field of psychology with the theory of neo-classic economic.

    Ok, that was a bit long and confusing.
    So what is behavioral economics is all about?
    It means that economics is not something you can measure in logical terms. The main key factor for eco-changes is humans, and those creatures as you already know, aren’t that rational.

    If you study the cognitive and emotional factors, on a certain group, you may find explanations for some of the groups economic decisions.
    One of the most important issues are the effect on market decisions and public choice.

    Why we need it?
    because we humans act irrational!

    • Why gambles in casino are keep gambling although they know they’re gonna lost all their money?
    • Why people always say they need to save money for retirement, start exercise, stop smoking, keep on balanced nutrition- and still do nothing?
    • Why victims, who have been treated improperly, demand revenge, although it damages their interests?

    All those (and many more – I can go for hours), harms the ‘economic person’ model, which has been the base of the classic and new-classic economics for hundreds of years.
    The ‘economic person’ take rational and logical decisions, motivated by personal interests, after considering the cost-benefit and try to maximize his profits.
    The ‘economic person’ is a wise, reasonable, selfish and analytic person, showing perfect self-control, and act in order to achieve his future goals. He is not moved aside by his mental or physical states.
    This man is the base of all the economics theories and models for the past hundred years.
    There’s one problem – He does not exists!

    While dealing with real people, you find out different types of irrational behaviors.
    Some actually damages the person himself, some showing altruist behavior and far from the one’s interests.
    The bottom line: psychology takes huge part on the process of decisions making, revealing the conflict between logics and passions.

    People, like animals, have basic tension between provide themselves immediate satisfactions, and patiently waiting for future satisfactions.
    They want it here and now, and also wish to think about tomorrow.

    In general, people act irrational when they are underestimating in the value of the future.
    They (humans) spend too much value and effort for things we want to do right now, on the expanse of the other good thing we can do in the future.

    And still- marketing is everything!

    It has been shown that the wisdom of marketing is the base for motivating the mass and the crowd to change their way of thinking and choose one product over the others.
    Marketing is a key factor in which the economic person reaches all the irrational ones, and affects them to do what is right, diverse from the immediate satisfaction desired.

    Marketing, by the orientation of behavioral economics, must take into consideration the population it’s aiming too.
    Geo-location, age, education, standards, latest trends and culture are one of the many things it should consider.

    Is it also relevant for the CEO Game? Of Course!
    One of the most important roles the CEO need to be very close to is the Marketing department. It must be creative, smart, and targeted.
    The difference between become the hottest trend and be another shelf product as many others, is by taking the public heuristics into consideration.
    Learn the area, learn your potential consumers, feel the market and think how to become outstanding (original rather than normal).
    Develop a marketing plan and sale your products as they are the best thing the community could ask for, be aggressive but gentle, think big and give credit for your buyers.

    And the most important, always remember that humans are irrational. You can’t predict the future.

    Cheer’s!

    Nimrod

    The CEO Game.


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