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Modeling the mechanisms of economic agent behavior

Dolyatovskii V.A. Rostov State University of Economics (RSUE), Rostov-on-Don, Russian Federation ( dvaleri@inbox.ru )

Grechko M.V. Southern Federal University (SFEDU), Rostov-on-Don, Russian Federation ( MVGrechko@inbox.ru )

Journal: Economic Analysis: Theory and Practice, #10, 2018

Subject The article explores, systematizes, and integrates economic knowledge in relation to the analysis of economic agents' behavior. It also simulates economic behavior of economic agents, considering the logic of the fourth wave of modern science development (cognitive revolution in scientific knowledge).
Objectives The purpose of the study is to develop application-oriented tools to simulate the mechanisms of economic behavior of economic agents, taking into account the obtained results of the modern economic thought evolution. We assume that consumer behavior is irrational. It is not accidental, but of systematic character.
Methods The research rests on the cognitive potential of behavioral and institutional economics, results of the prospect theory, instruments of economic and mathematical simulation enabling to systematize the economic knowledge in the context of analysis of economic agents' behavior.
Results We revealed the continuum of the modern knowledge in the context of cognitive revolution. The paper adduces arguments that preferences of individuals are endogenous, and the factor really controlling their behavior (decision-making) is neither more nor less than human irrationality. At the same time, economic agents react to a greater extent to the context of situation and adapt to changes. They estimate changes in absolute, rather than in relative terms.
Conclusions The findings may create a basis for creating a scientific basis to choose economic agents and control their behavior.


Methods to choose and optimize the employee motivation strategy

Dolyatovskii V.A. Rostov State University of Economics (RSUE), Rostov-on-Don, Russian Federation ( dvaleri@inbox.ru )

Grechko M.V. Southern Federal University (SFEDU), Rostov-on-Don, Russian Federation ( MVGrechko@inbox.ru )

Journal: National Interests: Priorities and Security, #2, 2019

Subject The article studies, systematizes and integrates the economic knowledge for developing applied tools to model the way the employee motivation strategy is chosen and optimized.
Objectives The research focuses on the issue of making substantial additions to the existing theory of employee motivation and devises applied tools to model a choice and optimization of the employee motivation strategy in line with the procedural approach to motivation and other evolutionary results of the contemporary economic thought.
Methods The research is based on the cognitive potential of behavioral economics, results of the employee motivation theory, tools of economic and mathematical modeling. We systematize economic knowledge for purposes of employee motivation, and illustrate the modeling of a choice and optimization of the employee motivation strategy.
Results Drawing upon behavioral economics, tools of behavioral sciences in economics, economic and mathematical modeling, we propose our own model of an employee who transforms flows of work with inner states determined by a set of various factors. We note that the growing importance of supreme needs (active performance and self-improvement) builds a personality and leadership as the subsequent development step. We prove that the type of an entity and its complexity contribute to intensifying requirements to personnel who undergo the transformation of social dominants as prevailing needs, which will subsequently shape the behavior and position of a person within the corporate organism.
Conclusions and Relevance The findings shall subsequently frame scientific principles for employee motivation management.


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